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Problem 1: Psy and Clyd formed a partnership on January 1, 2018 by contibuting capital of P262,500 and P37,500, respectively. They agreed to share profits and losses 70% and 30% respectively. Clyd manages the partnership and is given a salary of P5,000 a month and bonus of 20% of net income before salary, interest and bonus. Interest of 5% of the beginning capital is to be given to each partner and any remainder is to be divided according to their profit and loss ratio. For the year ended December 31, 2018, the partnership generated a net income of P48,000 after salaries, interests and the bonus. What is the amount received by Clyd in the distribution of profit?
a. 76,275 b. 107,025 c. 77,275 d. 105,150
Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest. How much control does the Fed have over this longer real rate?
Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.
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