The NBC Company reports net income of $60,000. If partners N, B, and C have an income ratio of 50%, 30%, and 20%, respectively, C's share of the net income is _____?

The NBC Company reports net income of $60,000. If partners N, B, and C have an income ratio of 50%, 30%, and 20%, respectively, C's share of the net income is _____?

Explanation

To determine C's share of the net income:

Calculate C's share:

  • C's Share = Net Income × C's Ratio
  • C's Share = $60,000 × 20%
  • C's Share = $60,000 × 0.20 = $12,000

So, C's share of the net income is $12,000.