Reference no: EM132585376

Partner's Ben, Noreen, Lani and Edwin are initially invested P 45 000, P 60 000, P 65 000, and P 85 000 each to form a partnership on July 1, 2020. They divided profits and losses based on the following:

a.) Annual salaries of P 15 000, P 20 000 and, P 20000 to Ben, Noreen, and Lani;

b.) 10% annual interest on original capital to Lani;

c.) 20% bonus to Edwin before salaries, interests, and bonus;

d.) The balance is to be divided 4:3:2:1 ratio to Ben, Noreen, Lani, and Edwin each, respectively;

Question 1: If on December 31, 2021 the capital balances of Noreen and Lani total P250 000, how much would have been the total profit given to Edwin (2020-2021)?