A Level Accounting (9706)•9706/12/O/N/20

Explanation
Ambiguous treatment of partner's loan interest in profit calculation Steps:
- Profit before appropriation is $24,000; appropriation includes salary and residual sharing, but loan interest treatment (expense already deducted or appropriation to deduct) is unspecified.
- If interest (2,500) already deducted, then deduct salary 24,000 = 5,000.
- If interest not deducted, then deduct interest 14,000 from 7,500 residual, Brian's share $3,750.
- John's $5,000 drawings are advances against his share, not affecting residual calculation; no match to options.
Not enough information.
Final answer: Not enough information.
Topic: Preparation of financial statements
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