Wright and Beard Are Partners

question 46

Short Answer

Wright and Beard are partners. Net income or loss is allocated on the basis of the balances of the partners' capital accounts at the beginning of the year. On January 1, 2013, the balances were Wright, $42,000, and Beard, $18,000. Net loss for the partnership for the year ended December 31, 2013, was $9,000.
1. How much of the net loss will be allocated to Wright?
2. How much of the net loss will be allocated to Beard?

---

Definitions:

Consultative Decisions

Are made by one individual after seeking input from or consulting with members of a group.

Manager

An individual responsible for controlling or administering an organization or group of staff; someone who makes decisions and oversees the work of others.

Subordinates

Individuals who are lower in rank or position and are typically under the direction of someone else within an organizational hierarchy.

Novel Idea

A unique or original concept, thought, or innovation that has not been previously considered or explored.