Question
Frodo, Sam, and Merrys partnership calls for the following allocation of income: Frodo and Merry are to receive lump sum salary payments of $10,000 each,
Frodo, Sam, and Merrys partnership calls for the following allocation of income: Frodo and Merry are to receive lump sum salary payments of $10,000 each, Sam and Merry are to receive interest of 10% of their ending capital balances, if theres a profit Frodo is to receive a bonus equal to 20% of the profit, and any remaining income is to be split between Frodo, Sam, and Merry 50%, 20%, and 30% respectively. Frodo, Sam, and Merrys ending capital balances were $50,000, $300,000, and $100,000 respectively. If there was a partnership net profit of $200,000, how much was allocated to Frodo in total? Question 22 options: A) $40,000 B) $20,000 C) $50,000 D) $100,000
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