CORRECT ANSWER A. OPENING BALANCE

143.

Correct answer a.

Opening balance:

$2,000,000

January

+2,000,000

=

$4,000,000 x .04 =

+160,000

February

+1,000,000

=

$5,000,000 x .04 =

+200,000

March

-5,000,000

=

0

April

-3,000,000

=

$3,000,000 x .08 =

-240,000

May

-2,000,000

=

$5,000,000 x .08 =

-400,000

June

+6,000,000

=

$1,000,000 x .04 =

+ 40,000

-240,000 ÷ 12 = 20,000