Answer:
Depreciation, insurance, and property taxes represent $27,000 of the estimated monthly expenses so will have to be removed to find out how much is due in the month.
March April May
March Expenses :
Paid in March $73,112
Paid in April $25,688
April Expenses :
Paid in April $66,
600
Paid in May $23,400
May Expenses :
Paid in May $58,830
Total Cash Payment $73,112 $92,288 $82,230
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March Expenses
Paid in March ((125,800 - 27,000)* 74%) = $73,112
Paid in April ((125,800 - 27,000)*26%) = $25,688.
April Expenses
Paid in April ((117,000 - 27,000)*74%) = $66,
600
Paid in May ((117,000 - 27,000)*26%) = $23,400
May Expenses
Paid in May ((106,500 - 27,000)*74%) = $58,830
