2. Cab and Jo are considering forming a partnership whereby profits will be allocated through the use of salaries and bonuses. Bonuses will be 10% of net income after total salaries and bonuses. Cab will receive a salary P40,000 and a 10% bonus or simply receiving a salary of P52,000. Both partners will receive the same amount of bonus. Determine the level of net income that would be necessary so that Jo would be indifferent to the profit sharing option selected. a. P240,000 c. P94,000 b. 300,000 d. 334,000 3. AA and BB formed a partnership in 2004 and made the following investments and capital withdrawals during the year: AA BB Investments Draws Investments Draws March 1 30,000 20,000 June 1 10,000 10,000 August 1 20,000 2,000 December 1 5,000 The partnership's profit and loss agreement provides for a salary of which P30,000 was paid to each partner for 2003. AA is to receive a bonus of 10% on net income after salaries and bonus. The partners are also to receive interest of 8% on average annual capital balances affected by both investments and drawings. Any remaining profits are to be allocated equally among the partners. Assuming net income of P60,000 before salaries and bonus, determine how the income would be allocated among the partners: a. AA, P 31,138; BB, P28,862 C. AA, P30,633; BB, P29,367 b. AA, P 33,537; BB, P26,463 d. AA, P30,684; BB, P29,316