Turner, Roth, and Lowe are partners who share income and loss in a 2:3:5 ratio (in...

  

Transcribed Image Text:

Turner, Roth, and Lowe are partners who share income and loss in a 2:3:5 ratio (in percents: Turner, 20% ; Roth, 30%; and Lowe, 50%). The partners decide to liquidate the partnership. Immediately before liquidation, the partnership balance sheet shows total assets, $133,200; total liabilities, $84,000; Turner, Capital, $3,100; Roth, Capital, $14,300; and Lowe, Capital, $31,800. The liquidation resulted in a loss of $80,200. Required: a. Allocate the loss to the partners. b. Determine how much each partner should contribute to the partnership to cover any remaining capital deficiency. Complete this question by entering your answers in the tabs below. Required A Required B Allocate the loss to the partners. Note: Losses and deficits should be indicated with a minus sign. Initial capital balances Allocation of gains (losses) Capital balances after gains (losses) Turner $ 3,100 Roth $ 14,300 Lowe $ 31,800 $ Total 49,200 0 Turner, Roth, and Lowe are partners who share income and loss in a 2:3:5 ratio (in percents: Turner, 20% ; Roth, 30%; and Lowe, 50%). The partners decide to liquidate the partnership. Immediately before liquidation, the partnership balance sheet shows total assets, $133,200; total liabilities, $84,000; Turner, Capital, $3,100; Roth, Capital, $14,300; and Lowe, Capital, $31,800. The liquidation resulted in a loss of $80,200. Required: a. Allocate the loss to the partners. b. Determine how much each partner should contribute to the partnership to cover any remaining capital deficiency. Complete this question by entering your answers in the tabs below. Required A Required B Allocate the loss to the partners. Note: Losses and deficits should be indicated with a minus sign. Initial capital balances Allocation of gains (losses) Capital balances after gains (losses) Turner $ 3,100 Roth $ 14,300 Lowe $ 31,800 $ Total 49,200 0

Answer rating: 100% (QA)

a To allocate the loss to the partners we need to use their profitsharing ratio which is 235 20 for Turner 30 for Roth and 50 for Lowe Total loss 8020... View the full answer