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:

Tuition

The fee that educational institutions charge for instruction.

Books

Physical or electronic publications consisting of written, printed, or illustrated work bound together for reading or study.

Inventory Cost

The total cost associated with holding and managing inventory, including storage, insurance, and obsolescence.

Building

A structure with a roof and walls, such as a house or factory, used for living, working, storage, or other purposes.