The partnership ABCD was formed on January 1, 2015. Capital contributions of the partners are...
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The partnership ABCD was formed on January 1, 2015. Capital contributions of the partners are as follows: A 384,000; B 192,000; C 192,000 and D 153,600 The partnership agreement provides that each partner shall receive 5% interest on the amount contributed. In addition, A is to receive a salary of 38,400 and B a salary of 33,600. The agreement further states that C shall receive from the partnership a minimum of 43,200 a year and D a minimum of 55,680 a year, both including amounts allowed on interest on capital and their respective shares of profits. The balance of the profits is to be shared at 30%, 30%, 20% and 20% to A, B, C and D, respectively. The amount that must be earned by the partnership during 2015, before any charge for interest on capital and partners salaries, in order that A may receive an aggregate of 115,200 including interest, salary and share of profits is:
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