The JPB partnership reported net income of $160,000 for the year ended December 31, 2008. According to the partnership agreement, partnership profits and losses are to be distributed as follows: J………………...P……………….B

Salaries …………………… $50,000………$60,000………… $30,000
Bonus on net income …….…10%.....................5%..................10%
Remainder (IF POSITIVE)… 60% ……………30% ………………10%
Remainder (IF NEGATIVE)..30%.....................40%..................30%
should partnership net income for 2008 be allocated to J, P, and B?
……….. J…………….…...P……………….B

A) $96,000……… $48,000………...$16,000
B) $58,000………. $64,000………. .$38,000
C) $60,000………. $60,000…………$40,000
D) $66,000………. $68,000…………$46,000

A. Option A
B. Option B
C. Option C
D. Option D