Applying the Profit and Loss Ratio Method,compute Taylor and Timmy's

Multiple Choice

Applying the profit and loss ratio method,compute Taylor and Timmy's share of net income if Taylor invested $200,000 and Timmy invested $800,000 and the profit and loss ratio is 3:2.Net income was $75,000.

A) Taylor,$15,000;Timmy,$60,000
B) Taylor,$37,500;Timmy,$37,500
C) Taylor,$45,000;Timmy,$30,000
D) None of these answers is correct.