Christie and Jergens formed a partnership with capital contributions of $250,000 and $350,000, respectively. Their partnership agreement calls for Christie to receive a $55,000 per year salary. Also, each partner is to receive an interest allowance equal to 10% of a partner's beginning capital investments. The remaining income or loss is to be divided equally. If the net income for the current year is $119,000, then Christie and Jergens's respective shares are:

Christie and jergen's respective shares are $59,500 and $59,500

Explanation:

Solution

Recall that:

Christie and Jergens created a partnership with capital contributions of = $250,000 and $350,000

The contract terms enables Christie to receive an amount of = $55,000 per salary

An interest allowance is received by both of them equal to =10%

The net income of the Present year = $119,000

Thus,

We find the respective shares of both partners which is stated as follows :

Christie's net income = $59,500

Jergen's net income = $59, 500

The total for both is =$119,000

Hence, due to their partnership contract terms or agreement the sharing of the profit and loss is dividend equally between them.

D

Explanation:

Outsourcing refers to a practice where a firm seeks out an external party to provide services that would have otherwise been provided by staff of the firm. Here a customer assistance center in India is contracted. One of the advantages of outsourcing is that it results in cost savings.

However, confidentiality of company information could be compromised via outsourcing, and competitors could have access to trade secrets of such firms.