Reference no: EM132759326

The partnership agreement of Axel, Berg & Cobb provides for the year-end allocation of net income in the following order:

First, Axel is to receive 10% of net income up to ?100,000 and 20% over ?100,000.
Second, Berg and Cobb each are to receive 5% of the remaining income over ?150,000.
The balance of income is to be allocated equally among the three partners.

Problem 1: The partnership's 2003 net income was ?250,000 before any allocations to partners. What amount should be allocated to Axel?

a. 101,000

b. 103,000

c. 108,000

d. 110,000