The partnership contract for Hanes and Jones LLP provides that Hanes is to receive a bonus of 20% of net income (after the bonus) and that the remaining net income is to be divided equally. If the partnership income before the bonus for the year is $57,600, Hanes' share of this pre-bonus income is:

pre-bonus income is $33600

Explanation:

given data

bonus = 20% of net income

income before the bonus = $57600

to find out

pre-bonus income

solution

we know pre income bonus is express as

pre-bonus income = bonous + share of income ... 1

so bonus = 20/120 * 57600 = $9600

and share of net income = 1/2 * (57600 - 9600)

share of net income = $24000

so from equation 1

pre-bonus income = bonous + share of income

pre-bonus income = 9600 + 24000

pre-bonus income is $33600