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Problem 1: Roberto and Reagan are both 25 percent owner/managers for Bright Light Enterprises. Roberto runs the retail store in Sacramento, CA, and Reagan runs the retail store in San Francisco, CA. Bright Light generated a $129,550 profit companywide made up of a $76,300 profit from the Sacramento store, a ($28,250) loss from the San Francisco store, and a combined $81,500 profit from the remaining stores. If Bright Light is taxed as a partnership and decides that Roberto and Reagan will be allocated 70 percent of his own store's profit with the remaining profits allocated pro rata among all the owners, how much income will be allocated to Reagan?
Option 1: ($25,227.50). Option 2: ($19,775.00). Option 3: $4,203.75. Option 4: $21,023.75.
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