3) Greta, Harriet, and Ivy have a retail partnership business selling personal computers. The partners are ACC 401 Advanced Accounting Page 2 of 4 allowed an interest allocation of 6% on their average capital. Capital account balances on the first day of each month are used in determining weighted average capital, regardless of additional partner investment or withdrawal transactions during any given month. Withdrawals of capital that are debited to the capital account are used in the average calculation. Partner capital activity for the year was: Capital accounts Greta Harriet Ivy Jan 1 balance $680,000 $500,000 $580,000 Feb 12 investment 40,000 Mar 26 investment 20,000 Apr 20 withdrawal (10,000) May 8 withdrawal (15,000) (8,000) Jul 3 investment 14,000 Sep 29 investment 8,000 3,000 6,000 Nov 5 investment 3,000