[14 Times a Charm]

Is it just me or is this Wiley Test Bank MCQ ridiculous? I swear I thought the answer was $56,250. This MCQ is absurd!

Beck, the active partner in Beck & Cris, receives an annual bonus of 25% of partnership net income after deducting the bonus. For the year ended December 31, 2010, partnership net income before the bonus amounted to $300,000. Beck’s 2010 bonus should be

A. $56,250

B. $60,000

C. $62,500

D. $75,000

Answer B is correct. The problem states that the bonus is 25% of partnership net income after deducting the bonus. The solutions approach is to write an equation and solve for the bonus (B).

B = .25($300,000 – B)

B = $75,000 – .25B

1.25B = $75,000

B = $60,000

[Anonymous]

That's actually one I can answer. I kind of wish I would get that kind of question on the exam.

[ledgermaven]

I just did these questions last week and also got your answer the first time. Then learned their little formula with ‘B' and now do that. With the first answer the test bank told me that it was an imaginary number. No, it was one of the wrongly computed, not a completely made up number…

[realestatewhiz]

Personally, I wouldn't know how to solve for it..However, there is working backwards to solve it.

[14 Times a Charm]

Realistically, during an actual FAR exam at the Prometric Center, I would never get this question correct unless I guessed right. It's just an example of how tricky these questions can be. That's just my perspective. I was never good at Algebra and I never expected there to be any distributive algebra questions on the real exam. This is maybe the only one like this on the whole Wiley FAR test bank with distributive algebra. If you read the first sentence of the question and just solve the question in your head without any equations, the answer becomes so obvious, I guess that's why it's not the actual answer because it would be too obvious. There is nothing obvious on the FAR exam, I should know better after getting a 60 the first time.

[Minimorty]

Whats great about multiple choice is the answer is already there. Just test each of the numbers based on the facts from the question and see if one of them is right.

I know you mentioned you arent great at Algebra, but this is going to be one of the easier questions on the exam. This should be a free point or two.

[Author]

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