Applying the Interest Allowance Method,compute Julie and Jennifer's Share of Net

question 19

Multiple Choice

Applying the interest allowance method,compute Julie and Jennifer's share of net income if Julie invested $40,000 and Jennifer invested $24,000 at an 8% interest rate,with the remainder to be divided equally.Net income was $10,000.

• A)Julie $3,200; Jennifer $1,920
• B)Julie $6,250; Jennifer $3,750
• C)Julie $5,640; Jennifer $4,360
• D)None of these answers is correct.

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