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Bertram and Ermest share profits and losses equally after salary and interest allowances. Bertram and...

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Accounting

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Bertram and Ermest share profits and losses equally after salary and interest allowances. Bertram and Ernest recewe salary allowancen of $40,000 and $60,000, respectively, and both partneri receive 10% intereit on their average capital balances, Average capital balances are ealculated at the beginning of each month, regardlest of when additional capital contributions or permanent withdrawals are made subsequently within the month. Partners' drawings of $3,000 per month are not used in determining the average capital balances. Total net income for 2014 is $240,000. If the average capital balances for Bertram and Ernest are $200,000 and $240,000, what will the total partnership profit allocations be for Bertram and Ernest in 2014 ? A. $120,000 and $120,000 B. $140,000 and $100,000 C. $100,000 and $140,000 D. $108,000 and $132,000

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