Answered

Looking for answers? Westonci.ca is your go-to Q&A platform, offering quick, trustworthy responses from a community of experts. Explore comprehensive solutions to your questions from knowledgeable professionals across various fields on our platform. Connect with a community of professionals ready to help you find accurate solutions to your questions quickly and efficiently.

Roberto and Reagan are both 25-percent owner/managers for Bright Light Incorporated. Roberto runs the retail store in Sacramento, California, and Reagan runs the retail store in San Francisco, California. Bright Light generated a $131,300 profit companywide made up of a $76,800 profit from the Sacramento store, a ($29,500) loss from the San Francisco store, and a combined $84,000 profit from the remaining stores. If Bright Light is taxed as a partnership and it is decided that both Roberto and Reagan will be allocated 70 percent of his own store's profit, with the remaining profits allocated pro rata among all the owners, how much income will be allocated to Reagan in total

Sagot :

Parrain

Answer: $‭3,897.5‬0

Explanation:

The profit that is to be shared on a pro rata basis will include:

a. The $84,000 profit from the remaining stores

b. 30% of the profit from Sacramento

c. 30% of the loss from San Francisco

= 84,000 + (0.3 * 76,800) + (0.3 * -29,500)

= $‭98,190‬

Reagan is to get 25% of the above as well as 70% of San Francisco losses.

= (0.25 * ‭98,190‬) + (0.7 * -29,500)

= ‭24,547.5‬0 - ‭20,650‬

= $‭3,897.5‬0

We hope this information was helpful. Feel free to return anytime for more answers to your questions and concerns. Thank you for your visit. We're committed to providing you with the best information available. Return anytime for more. We're glad you chose Westonci.ca. Revisit us for updated answers from our knowledgeable team.