Reference no: EM132815155

The partnership agreement of Joshua, Mark, and Peter provided for the following terms on distribution of profits and losses:

1. Joshua is to receive 10% of the profit up to P1,800,000 and 20% on the amount of excess;
2. Mark and Peter, are to receive 5% of the remaining profit in the excess of P2,700,000 after Joshua's share as per above;
3. The balance to be equally shared
4. For the year just ended, the partnership realized a profit of P4,500,000 before distribution to partners.

REQUIRED:

Question 1: Compute the profit share given to Joshua.