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Xavier and Yolanda have original investments of $47,000 and $101,800, respectively, in a partnership. The articles of partnership include the following provisions regarding the division
Xavier and Yolanda have original investments of $47,000 and $101,800, respectively, in a partnership. The articles of partnership include the following provisions regarding the division of net income: interest on original investment at 20%; salary allowances of $25,600 and $31,700, respectively; and the remainder to be divided equally. How much of the net income of $107,900 is allocated to Xavier?
a. $25,600
b. $54,504
c. $45,420
d. $35,000
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