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Applying the interest allowance method, compute Taylors and Timmys share of net income if Taylor invested $200,000 and Timmy invested $800,000 at a 6% interest
Applying the interest allowance method, compute Taylors and Timmys 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. A. Taylor $15,000; Timmy $60,000 B. Taylor $37,500; Timmy $37,500 C. Taylor $19,500; Timmy $55,500 D. None of the above
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