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

question 38

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.

-What is the weighted-average capital for Bertram and Ernest in 2011?

• A)$224,000 and $245,000
• B)$203,333 and $221,167
• C)$221,333 and $239,167
• D)$256,000 and $220,000

---

Definitions:

Dissonance Theory

A theory suggesting that inconsistency among beliefs or behaviors causes an uncomfortable psychological tension that people are motivated to reduce.

Changing Cognitions

The process of modifying thoughts, beliefs, and attitudes, often aimed at improving mental health or personal effectiveness.

Cognitive Dissonance

The mental discomfort experienced by a person who holds two or more contradictory beliefs, ideas, or values at the same time.

High Level

Referring to something that is advanced or complex, often involving abstract, broad, or in-depth aspects.