Applying the Ratio Based on Investment Method, Compute Tom and Troy's

question 100

Multiple Choice

Applying the ratio based on investment method, compute Tom and Troy's share of net income if Tom invested $300,000 and Troy invested $500,000. Net income was $130,000. (Round any intermediate calculations to two decimal places, and your final answers to the nearest dollar.)

• A) Tom, $80,000; Troy, $50,000
• B) Tom, $65,000; Troy, $65,000
• C) Tom, $49,400; Troy, $81,900
• D) None of these answers is correct.

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Definitions:

Integrity

The quality of being honest and having strong moral principles, or the state of being whole and undivided.

Centralized

A system or structure where the decision-making authority is concentrated at a single point or in a single person.

Peripheral Members

Those participants in a group or organization who have a lower level of involvement or are marginal to the core activities.

Core Members

Individuals who are central to a group or team, typically taking on leadership roles, heavily influencing decision-making, or being crucial to the group's function.