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PROBLEM 3A: Four friends go together to purchase some gold coins as an investment. The total needed is $10,000 for a set of 100 coins. They contribute their savings as indicated below. Because they don't have quite enough money in savings, Abe's Uncle Ed is asked to contribute the remainder. Apportion the coins by Hamilton's method. Divisor = Person Abe Beth Chad Dave Uncle Ed Total Investment $3619 $1859 $2257 $2010 $ $10,000 Quotas Ratio Initial Apportionment Final Apportionment

PROBLEM 3A: Four friends go together to purchase some gold coins as an investment. The total needed is $10,000 for a set of 100 coins. They contribute their savings as indicated below. Because they don't have quite enough money in savings, Abe's Uncle Ed is asked to contribute the remainder. Apportion the coins by Hamilton's method. Divisor = Person Abe Beth Chad Dave Uncle Ed Total Investment $3619 $1859 $2257 $2010 $ $10,000 Quotas Ratio Initial Apportionment Final Apportionment

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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PROBLEM 3A: Four friends go together to purchase some gold coins as an investment. The total needed is $10,000 for a set of 100 coins. They contribute their savings as indicated below. Because they don't have quite enough money in savings, Abe's Uncle Ed is asked to contribute the remainder. Apportion the coins by Hamilton's method. Divisor Person Abe Beth Chad Dave Uncle Ed Total Person Abe Beth Chad Investment $3619 $1859 $2257 $2010 Dave Uncle Ed Total $ $10,000 PROBLEM 3B: When the four friends get to the coin broker he mentions that there will be $50 in taxes that they hadn't accounted for. The friends empty their pockets and find Abe has $5, Beth has $16, Chad has $2, and Dave has $32. They pool their money and pay the taxes, with the extra $5 going back to Uncle Ed. Recalculate their apportionment of the 100 coins by Hamilton's method. Divisor = Investment $ $3624 $1875 $2259 $2042 Quotas $10,050 Quotas Ratio Will Chad be upset? Explain why or why not. Ratio Initial Apportionment Is there a paradox exhibited here? If so, which one? Final Apportionment Initial Apportionment Final Apportionment
Transcribed Image Text:PROBLEM 3A: Four friends go together to purchase some gold coins as an investment. The total needed is $10,000 for a set of 100 coins. They contribute their savings as indicated below. Because they don't have quite enough money in savings, Abe's Uncle Ed is asked to contribute the remainder. Apportion the coins by Hamilton's method. Divisor Person Abe Beth Chad Dave Uncle Ed Total Person Abe Beth Chad Investment $3619 $1859 $2257 $2010 Dave Uncle Ed Total $ $10,000 PROBLEM 3B: When the four friends get to the coin broker he mentions that there will be $50 in taxes that they hadn't accounted for. The friends empty their pockets and find Abe has $5, Beth has $16, Chad has $2, and Dave has $32. They pool their money and pay the taxes, with the extra $5 going back to Uncle Ed. Recalculate their apportionment of the 100 coins by Hamilton's method. Divisor = Investment $ $3624 $1875 $2259 $2042 Quotas $10,050 Quotas Ratio Will Chad be upset? Explain why or why not. Ratio Initial Apportionment Is there a paradox exhibited here? If so, which one? Final Apportionment Initial Apportionment Final Apportionment
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