Problem
The partnership agreement of Axel, Berg & Cobb provides for the year-end allocation of net income in the following order:
1) First, Axel is to receive 10% of net income up to $100,000 and 20% over $100,000.
2) Second, Berg and Cobb each are to receive 5% of the remaining income over $150,000.
3) The balance of income is to be allocated equally among the three partners.
The partnership's net income was $250,000 before any allocations to partners. What amount should be allocated to Axel?