Alpha and Beta Are Partners Who Share Income in the Ratio

question 54

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 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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Product Life Cycle

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