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Darcy, Jackson, and Truman have a retail partnership business selling personal computers. The partners are allowed an interest allocation of 8% on their average capital.

Darcy, Jackson, and Truman have a retail partnership business selling personal computers. The partners are allowed an interest allocation of 8% 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 and investments "in" that are credited to the capital account are used in the average calculation. Partner capital activity for the year was:

CapitalaccountsDarcyJacksonTruman

Jan 1balance$200,000$300,000$ 250,000

Feb 28investment50,000

Mar 16investment10,00020,000

Apr 20withdrawal(10,000)

Jul 3 withdrawal andinvestment(7,000)10,000

Sep 29investment5,0004,0005,000

Nov 5investment5,000

Required:

Calculate theweighted average capital for each partner, and determine the amount of interest that each partner will be allocated. Round all calculations to the nearest whole dollar.

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