The Partnership Contract for Hanes and Jones LLP Provides That

The partnership contract for Hanes and Jones LLP provides that Hanes is to receive a bonus of 20% of net income (after the bonus) and that the remaining net income is to be divided equally. If the partnership income before the bonus for the year is $57,600, Hanes' share of this pre-bonus income is:

A) $28,800.
B) $33,600.
C) $34,560.
D) $35,520.
E) $38,400.
Bonus = .20 (NI - Bonus) = (.20 NI) - (.20 Bonus) .
1) 2 Bonus = $11,520. Bonus = $9,600. Remainder to share equally = $48,000. Hanes receives $24,000 + $9,600 = $33,600

Correct Answer:

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