White, Sands, and Luke has the following capital balances and profit and loss ratios: $60,000 (30%), $100,000 (20%) and $200,000 (50%). The partnership has received a predistribution plan. How would $200,000 be distributed?

Question

Kaydence Anderson

Business

24 August, 11:34

White, Sands, and Luke has the following capital balances and profit and loss ratios: $60,000 (30%), $100,000 (20%) and $200,000 (50%). The partnership has received a predistribution plan. How would $200,000 be distributed?

+4

Answers (1)

Know the Answer?

Rebecca Daniels · Answer 1

White : 12,000 Sands: 68,000 and Luke 120,000

Explanation:

given data

White Sands Luke

Balance Capital 60000 100000 200000

Income Sharing 30% 20% 50%

Maximum Loss 200000 500000 400000

solution

so here when here 200000 is received so

White Sands Luke

first 20000 0 20000

next 140000 0 40000 100000

balance 40000 12000 8000 20000

Total partner each 12000 68000 120000