Partners Sherif and Rafik receive a yearly salary of $120,000 and $150,000, respectively, plus interest of 4 percent on weighted average capital. Partnership income for the year, before any distributions to partners, is $440,000. Weighted average capital balances for Sherif and Rafik are $600,000 and $450,000, respectively. Assume full implementation.

a.

Sherif gets a bonus of 25 percent of partnership income after salaries, interest, and his bonus.

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