Applying the Interest Allowance Method,compute Taylor and Timmy's Share of Net

question 114

Multiple Choice

Applying the interest allowance method,compute Taylor and Timmy's share of net income if Taylor invested $300,000 and Timmy invested $700,000 at a 6% interest rate,with the remainder to be divided equally.Net income was $80,000.

• A)Taylor,$24,000;Timmy,$56,000
• B)Taylor,$40,000 Timmy,$40,000
• C)Taylor,$28,000;Timmy,$52,000
• D)None of these answers is correct.

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Definitions:

Left Hypochondriac Region

An area of the abdomen located to the left of the epigastric region and above the left lumbar region, containing parts of the stomach and the left kidney.

Left Iliac Region

An area of the abdomen on the left side that is bounded by the iliac crest; often associated with parts of the colon and small intestine.

Epigastric Region

An area of the abdomen located just above the stomach and below the ribcage, often associated with stomach pain or discomfort.

Umbilical Region

The central area of the abdominal surface located around the umbilicus or belly button, often used as a reference point in abdominal anatomy.