rene is trying to decide whether to accept a salary of P120 salary of P75,000 plus a bonus of 10% of ent income after salary bonus as a means of allocating profit among partners. Salaries raceable to other partners are estimated to be P300,000. What amount of income would be necessary so that Irene would consider the choices to be equal? 870.000

Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter15: Partnership Accounting
Section: Chapter Questions
Problem 2PA: Arun and Margot want to admit Tammy as a third partner for their partnership. Their capital balances...
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What amount of income would be necessary so that Irene would consider the choices to be equal?

Irene is trying to decide whether to accept a salary of P120,000 or a
salary of P75,000 plus a bonus of 10% of ent income after salary and
bonus as a means of allocating profit among partners. Salaries
traceable to other partners are estimated to be P300,000.
What amount of income would be necessary so that Irene would
consider the choices to be equal?
870,000
495,000
915,000
O 795,000
Transcribed Image Text:Irene is trying to decide whether to accept a salary of P120,000 or a salary of P75,000 plus a bonus of 10% of ent income after salary and bonus as a means of allocating profit among partners. Salaries traceable to other partners are estimated to be P300,000. What amount of income would be necessary so that Irene would consider the choices to be equal? 870,000 495,000 915,000 O 795,000
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