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Question - Xun, Yue and Zhuo have interests in XYZ Partnership. Partnership income for the year is $400,000. The partnership agreement specifies that Xun is to receive an annual salary of $200,000, Yue is to receive an annual salary of $50,000, and Zhuo is to receive an annual salary of $120,000. Any remaining income or loss is to be divided between the three partners in a 2:1:1 ratio. Salaries are to be fully implemented. Compute partnership income allocated to Zhuo?
a. $112,500
b. $127,500
c. $120,000
d. $126,000
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