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Xun, Yue and Zhuo have interests in XYZ Partnership. Partnership income for the year is $400,000. The partnership agreement specifies that Xun is to receive
Xun, Yue and Zhuo have interests in XYZ Partnership. Partnership income for the year is $400,000. The partnership agreement specifies that Xun is to receive an annual salary of $200,000, Yue is to receive an annual salary of $50,000, and Zhuo is to receive an annual salary of $120,000. Any remaining income or loss is to be divided between the three partners in a 2:1:1 ratio. Salaries are to be fully implemented. Partnership income allocated to Zhuo is:
| A. | $126,000 | |
| B. | $112,500 | |
| C. | $127,500 | |
| D. | $120,000 |
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