Alpha and Beta Are Partners Who Share Income in the Ratio

question 120

Multiple Choice

Alpha and Beta are partners who share income in the ratio of 1:2 and have capital balances of $40,000 and $70,000, respectively, at the time they decide to terminate the partnership. After all noncash assets are sold and all liabilities are paid, there is a cash balance of $50,000. What amount of loss on realization should be allocated to Alpha?

• A) $60,000
• B) $20,000
• C) $30,000
• D) $50,000

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Definitions:

Spermatic Cord

A bundle of fibers and tissues in males that runs from the deep inguinal ring down to each testicle, containing blood vessels, nerves, and the vas deferens.

Gubernaculum

A fibrous cord that guides the descent of the testes in males or the ovaries in females during fetal development.

Dihydrotestosterone

A hormone generated from testosterone, playing a key role in the development of male characteristics and reproductive tissues.

Estrogen

A group of hormones that play an important role in the development and regulation of the female reproductive system and secondary sex characteristics.