Ace Barnes partnership has income of 110000 and Partner A i

Ace & Barnes partnership has income of $110,000 and Partner A is to be allocated a bonus of 10% of income after the bonus, Partner A\'s bonus would be ____. a. $11,000 b. $10,000 c. $9,091 d. $9,000 Show computation

Solution

Ace & Barnes partnership has income of $110,000

Partner A is to be allocated a bonus of 10% of income after the bonus.

Therefore $110,000=110%(100% income and 10% bonus to be paid on income after bonus (i,e on 100% income 10% bonus))

110,000/110% = 100,000 Income after bonus

Bonus = 100,000*10% = 10,000

Partner A Bonus = $10,000