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17 May, 21:38

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:

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  1. 17 May, 21:52
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    pre-bonus income is $33600

    Explanation:

    given data

    bonus = 20% of net income

    income before the bonus = $57600

    to find out

    pre-bonus income

    solution

    we know pre income bonus is express as

    pre-bonus income = bonous + share of income ... 1

    so bonus = 20/120 * 57600 = $9600

    and share of net income = 1/2 * (57600 - 9600)

    share of net income = $24000

    so from equation 1

    pre-bonus income = bonous + share of income

    pre-bonus income = 9600 + 24000

    pre-bonus income is $33600
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