Ron share of the income


Partners Don and Ron have agreed to share profits and losses in an 80:20 ratio respectively, after Don is allowed a salary allowance of $60,000 and Ron is allowed a salary allowance of $30,000. If the partnership had net income of $60,000 for 2012, Ron's share of the income would be:

A) $30,000.

B) $24,000.

C) $36,000.

D) $6,000.

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Accounting Basics: Ron share of the income
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