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Topic: Partnership income allocation 3 Jing, Kang, and Liang have interests in the JKL Partnership. Partnership income for the year is$350,000. The partnership agreement specifies

Topic: Partnership income allocation 3

Jing, Kang, and Liang have interests in the JKL Partnership. Partnership income for the year is$350,000. The partnership agreement specifies that partnership income is to be allocated as follows: salaries of $100,000 to Jing, $50,000 to Kang, and $50,000 to Liang; a bonus of 20% of partnership income, after deducting salaries and bonus, to Kang, and the remainder allocated equally between the three partners. Kang's bonus for the year is:

a.$37,500

b.$30,000

c.$25,000

d.$27,500

ANS:c

B = Bonus to Kang

B = ($350,000 $200,000 B) x 20%

B = $30,000 0.2BB = $25,000

Can you please explain how the answer was reached. I don't understand B = $30,000 0.2BB = $25,000

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