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Question - Partners AA and BB have profit and loss with the following provisions; salaries of P30,000 and P45,000 for AA and BB, respectively; a bonus to AA of 10% of net income after salaries and bonus; and interest of 10% on average capital balances of P20,000 and P35,000 for AA and BB, respectively. One-third of any remaining profits will be allocated to AA and the balance to BB. If the partnership had net income of P22,000, how much should be allocated to partner AA, assuming that the provisions of the profit and loss agreement are ranked by order of priority starting with salaries?
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