The XYZ partnership provides a 10% bonus to Partner Y that is based upon partnership income,after deduction of the bonus.If the partnership's income is $140,000,how much is Partner Y's bonus allocation?
A)$12,727
B)$13,860
C)$14,000
D)$15,400

Question

Quizplus · Accepted Answer

The bonus is calculated on the partnership income after deducting the bonus itself. Let's denote the bonus as B. The equation to calculate the bonus is B = 10% * (Partnership Income - B). Substituting the given values, we get B = 10% * ($140,000 - B). Solving this equation, we find B = $12,727.

The XYZ Partnership Provides a 10% Bonus to Partner Y