29. Maxwell is trying to decide whether to accept a salary of $60,000 or a salary of $25,000 plus a bonus of 20% of net income after salaries and bonus as a means of allocating profit among the partners. Salaries traceable to the other partners are estimated to be $75,000. What amount of income would be necessary so that Maxwell would consider the choices to be equal? A. $175,000

B. $210,000

C. $285,000

D. $310,000

Maxwell world consider choice equal to $310000

Explanation:

given data

accept a salary = $60,000

salary = $25,000

bonus = 20% of net income

to find out

amount of income would be necessary so that Maxwell would consider

solution

we get here income by bonus that is express as

bonus = 2 (income - bonus - salary) ... 1

3500 = 2 (income - (0.2 * 35000) - (0.2 * (75000 + 35000))

solve it we get

income = $310000

so Maxwell world consider choice equal to $310000