Soledad and Winston Are Partners Who Share Income in the Ratio

question 114

Multiple Choice

Soledad and Winston are partners who share income in the ratio of 1:3 and have capital balances of $100,000 and $140,000 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 $130,000. What amount of loss on realization should be allocated to Winston?

• A) $110,000
• B) $97,500
• C) $42,500
• D) $82,500

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Definitions:

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