KINDLY ANSWER NO. 3

For No. 3 On January 1, 2018, A, B and C formed ABC Partnership with original capital contribution of P 600,000, P 1,000,000 and P 400,000. A is appointed as managing partner. During 2018, A, B, and C made additional investments of P 1,000,000, P 400,000 and P 600,000, respectively. At the end of 2018, A, B, and C made Drawings of P 400,000, P 200,000 and P 800,000, respectively. At the end of 2018, the partnership has a credit balance in the income summary account of P 2,100,000. The profit or loss agreement of the partners is as follows: 10% interest on original capital contribution of the partners Quarterly salary of P 80,000 and P 20,000 for A and B, respectively Bonus to A equivalent to 20% of Net Income after interest and salary to all partners Remainder is to be distributed equally among the partners 3. What is A's share in partnership profit for 2018? A. 380,000 B. 680,000 C. 1,080,000 D. 400,000