Applying the interest allowance method, compute Julie's 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 decided equally. Net income was $10,000.

Answer 1

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 the above