24. (D) –Bonus =.

05 (P180, 000-P150, 000)

25. (C ) – Bonus = {[(p540,000 – 500,000)/P500,000]-.05) P 120,000

26. (D)
Nick Joe Mike Total
Interest on Capital
P200, 000 × .09 P18, 000
P350, 000 ×.09 P31, 000
P180, 000×.09 P16, 000 P65, 700
Salary P25, 000 15,000 35,000 75,000
Bonus .1(P150, 000-P100, 000) 5,000 5,000
Residual
P4, 300 × .25 1,075
P4, 300 ×.45 1,935
P4, 500 × .30 1,290 4,300

Totals P44, 075 P48,435 P57,490 P150,000

27. (D)
To equate P52,000 to P40,000 plus bonus , the bonus should amount to P12,000 (P52,000-P40,000) to
be indifferent under the two profit sharing options . Since Cab would receive the same bonus , the total
bonus would have to be P24,000 (P12,000 × 2). Based on foregoing , the following equation should be
developed:

Bonus = 10% (Net income – Salaries – Bonus)

P24,000 =.10 [NI – (30,000 + P40,000) - 24,000]
P24,000=.10[NI -94,000]
P24,000=.10NI-9,400
P33,400=.10NI
P33,400/,10=NI
NI = 334,000 (d)

Or Alternatively:

Bonus = P52,000-40,000 =P12,000 × 2 =P24,000

P24,000 =.10 (NI – Salaries – Bonus)
P24,000 =.10 (NI- 70,000-P24,000)
P24,000 =.10 (9,400
P 33,400 =.10 Nl
NI = P334,000
28.(b)

XX YY ZZ Total
XX First P200,000 × 10%...............................P20,000 P 20,000
Over P200,000: (500,000-
P200,000) × 20% ……………………………60,000 60,000
YY and ZZ: 5% of remaining income
Over P300,000: (P500,000 – 20,000-
P60,000 - P300,000) × 5% P6,000 P6,000 12,000
Balance : Allocate Equally…………………………….136,000 136,000 136,000 408,000

P216,000 142,000 P142,000 P500,000(b)

29. (c )
The weighted-average capital is computed as follows:

January 1- July 1 : P420,000 × 6 months ……………………………P2,520,000

July 1 – August 1 : P 540,000 × 1 month ……………………………..P540,000
August 1 –December 31 : P 495,000 × 5 months…………………………….2,475,000

Divided by : …………………………………………………………………………………………………..12 months

Weighted Average capital……………………………………………………………………………..P 461,250

Multiply by : Interest rate per year………………………………………………………………………10%

Amount of Interest per year…………………………………………………………………………..P 46,125 (c)