Use the Following Information to Answer the Question(s)below

question 37

Multiple Choice

Use the following information to answer the question(s) below.
Bertram and Ernest share profits and losses equally after salary and interest allowances.Bertram and Ernest receive salary allowances of $40,000 and $60,000,respectively,and both partners receive 10% interest on their average capital balances.Average capital balances are calculated at the beginning of each month,regardless of when additional capital contributions or permanent withdrawals are made subsequently within the month.Partners' drawings of $3,000 per month are not used in determining the average capital balances.Total net income for 2011 is $240,000.

-If the average capital balances for Bertram and Ernest are $200,000 and $240,000,what will the total partnership profit allocations be for Bertram and Ernest in 2011?

• A)$100,000 and $140,000
• B)$108,000 and $132,000
• C)$120,000 and $120,000
• D)$140,000 and $100,000

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Definitions:

3-Ethylfuran

A heterocyclic organic compound with the formula C6H8O, featuring a furan ring with an ethyl substituent.

4,4-Dimethylpyran

A six-membered oxygen-containing heterocycle with two methyl groups attached to the fourth carbon.

Ethers

A class of organic compounds containing an oxygen atom connected to two alkyl or aryl groups.

Boiling Points

The temperature at which a liquid turns to vapor at a given pressure, characteristic for each substance.