Hong and Si Are in Partnership Sharing Residual Profits and Losses

Multiple Choice

Hong and Si are in partnership sharing residual profits and losses 50:50.The profit for the year is $140 000.Hong is entitled to a salary of $40 000 per annum to be paid by means of a book entry) .Calculate the amount credited to Hong's retained earnings account after the final distribution of profits.

A) $90 000
B) $80 000
C) $100 000
D) $70 000