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Question - The partnership agreement of J. Hansen and D. Hernandez reflects differences in service and capital contributions as follows: (1) annual salary allowances of $30,000 to Hansen and $10,000 to Hernandez; (2) annual interest allowances of 10% of a partner's beginning-year capital balance, and (3) equal share of any remaining balance of income or loss. Both partners had beginning-year capital balances of $50,000. In the first year, the partnership makes $100,000. How much income would be allocated to Hansen?
a. $50,000
b. $40,000
c. $60,000
d. $55,000
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