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.