Question Assignment description
Bertram and Ernest share earnings and losses equally after wage and curiosity
allowances. Bertram and Ernest obtain wage allowances of $40,000 and $60,000,
respectively, and each companions obtain 10% curiosity on their common capital
balances. Common capital balances are calculated in the beginning of every
month, no matter when extra capital contributions or everlasting
withdrawals are made subsequently throughout the month. Companions’ drawings of $three,000
per 30 days usually are not utilized in figuring out the common capital balances. Whole web
earnings for 2011 is $240,000.
BertramErnest
January 1 capital balances$200,000$240,000
Yearly drawings ($three,000 a month)(36,000)(36,000)
Everlasting withdrawals of capital:
June three(24,000)
Might 2(30,000)
Extra investments of capital:
July 380,000
October 2100,000
What’s 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
