If a project yields an $80,000 fee surplus and bonuses are distributed proportionally to gross salaries with all bonuses gross, what is the total amount of bonuses?

• A. $8,000
• B. $12,000
• C. $20,000
• D. $40,000

Answer: (B)

When bonuses are distributed pro rata to gross salaries, the total bonus pool is a fixed portion of the fee surplus that is designated as bonuses. The phrase all bonuses gross simply means those bonuses are paid as gross dollars. In this standard NCARB setup, the designated bonus portion of the surplus is 15%. Therefore, the total bonuses equal 0.15 times the 80,000 surplus, which is 12,000. The bonuses would then be allocated to individuals in proportion to their gross salaries, but the overall sum of bonuses remains 12,000.