J and K are in partnership sharing residual profits and losses in the ratio 7: 3.
Their fixed capital accounts have balances of J $\$ 40000$, K $\$ 60000$. Interest is allowed on these at the rate of 10% per year.
J is paid a salary of $\$ 40000$ per year. Profit for the year was $\$ 200000$.
What was each partner’s total share of the profit for the year?
1 )
A
2 )
B
C
4 )
D
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