NC Partnership Has Current Year Net Income of $173,000

Multiple Choice

NC Partnership has current year net income of $173,000. The partnership agreement states that partners K. Nelson and V. Chavez should receive salary allowances of $42,000 and $50,000, respectively. Any remaining income or loss is to be allocated 35% to Nelson and 65% to Chavez. Nelson's share of the net income for the year is:

A) $102,550
B) $85,050
C) $43,050
D) $70,350
E) $60,550