, 22.06.2019 21:00 sofiaisabelaguozdpez

# Roberto and reagan are both 25 percent owner/managers for bright light inc. roberto runs the retail store in sacramento, ca, and reagan runs the retail store in san francisco, ca. bright light inc. generated a \$125,000 profit companywide made up of a \$75,000 profit from the sacramento store, a (\$25,000) loss from the san francisco store, and a combined \$75,000 profit from the remaining stores. if bright light inc. is an s corporation, how much income will be allocated to roberto?

## Answers

Answer from: ruchierosanp1n3qw

\$31,250

Explanation:

Since w know that the total profit which is generated by Bright Light Inc. is \$125,000 and the share of Robert and Reagan is 25% in Bright Light Inc.

So, if we compute the Robert income it would be equal to

= Total Profit × ownership percentage

= \$125,000 × 25%

= \$31,250

Since the Robert income is based on the ownership pattern that's why we compute it by considering ownership share.

Answer from: babykate66

net income of Reagan = \$5000

Explanation:

given data

profit companywide = \$125,000

profit from the Sacramento = \$75,000

loss from the San Francisco = \$25,000

profit from the remaining stores = \$75,000

to find out

how much income will be allocated to Reagan

solution

we know that Reagan's Profit From own store  is 25,000 and 70% belongs to them only

so here profit to be distributed on pro rata basis will be as

profit to be distributed = \$75000 + 30% of Roberto profit - 30% of Reagan profit    1

profit to be distributed = \$75000 + 30% × \$75,000 - 30% ×  \$25,000

profit to be distributed = \$90000

and here share of Reagan is = 25% of \$90000

share of Reagan = \$22500

so net income of Reagan will be here as

net income of Reagan = \$22500 - 70% of 25000

net income of Reagan = \$5000

Answer from: jared2461
Please answer please please thank you

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