Question

Question 21 of 75. 0 Manny is to receive 25% of the profits from partnership Boost Sounds, before taking into account any guaranteed payments, but not less than $10,000. If the partnership's income is $20,000 before taking into account guaranteed payments, how much does Manny receive as a guaranteed payment? O $0 O $5,000 $10,000 O $15,000 Info follour un

Answer 1

21)

Guaranteed Payment to a partner is the MINIMUM payment, irrespective to his/her share provided that there are enough profits of the firm

Therefore, in this case, as the profit is enough, Manny will receive the minimum guaranteed amount i.e. 10000

22)

[It belongs to Taxation Subject]

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