QUESTION $16$

Nancy and Betty enter into a partnership agreement where they decide to share profits according to the following rules: Nancy and Betty will receive salaries of $$1,600$ and $$11,500$ respectively as the first allocation. The next allocation is based on $20\%$ of each partner's capital balances. Any remaining profit or loss is to be allocated completely to Betty. The partnership's net income for the first year is $$50,000.$ Nancy's capital balance is $$91,000$ and Betty's capital balance is $$9,000$ at the end of the year. Calculate the share of profit$/$loss to be allocated to Betty.

$$19,800$

$$30,200$

$$4,000$

$$18,000$