Please show detailed solutions and explanations. Lily and Collins established a partnership on January 1, 2017 with Lily contributing $16,000 cash…

Please show detailed solutions and explanations.

Lily and Collins established a partnership on January 1, 2017 with Lily contributing $16,000 cash and Collins contributing $20,000. On June 18, Collins invested in the partnership a new equipment with a purchase price of $4,800 and inventory items with a book value of $2,400 and fair value of $3,200. Meanwhile, Lily made an additional investment of $1,600 on March 5 and another $1,600 on August 1. On November 23, she made a withdrawal of $4,000. Collins made no withdrawals during the year.

  1. What is the weighted average capital balance of Lily at the end of 2019?
  2. What is the simple average capital balance of Ted?