The NBC Company reports net income of $60,000. If partners N, B, and C have an income ratio of 50%, 30%, and 20%, respectively, C's share of the net income is _____?
- $18,000
- $30,000
- $12,000
- All of the above
Explanation
To determine C's share of the net income:
Calculate C's share:
- C's Share = Net Income × C's Ratio
- C's Share = $60,000 × 20%
- C's Share = $60,000 × 0.20 = $12,000
So, C's share of the net income is $12,000.
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