Answer Happy

Problem 49: Rian, Lance, Weng and Sidd own a publishing company that they operate as a partnership. Their agreement includes the following: ● Rian will receive a salary of P20,000 and a bonus of 3% of income after all the bonuses ● Lance will receive a salary of P10,000 and a bonus of 2% of income after all the bonuses All the partners are to receive the following: Rian - P5,000; Lance - P4,500; Weng - P2,000; and Sidd - P4,700, representing 10% interest on their average capital balances. Any remaining profits are to be divided equally among the partners Partnership reports a profit of P40,000 ● How much is Lance's share in the profit if profit is distributed in the following order of priority: Interest on invested capital, then bonuses, then salary, and then according to profit and loss percentage? a. P12,560 c. P12,433 b. P13,235.75 d. P12,830.75