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Applying the interest allowance method, compute Taylor's and Timmy's share of net income if Taylor invested $200,000 and Timmy invested $800,000 at a 6% interest rate, with the remainder to be divided equally. Net income was $75,000.

User Jingjing
by
7.9k points

2 Answers

2 votes

Taylor: $19,500

Timmy: $55,500

User Anton Filimonov
by
7.1k points
7 votes

Taylor Timmy

Interest @6% 12000 48000

Remainder Profit Divided Equally 7500 7500

Total 19500 55500

User Haozhe Xie
by
8.4k points
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