Carol is the only general partner in ABC Limited Partnership.She contributes $50,000 in capital.Wayne and Hosek are the only limited partners.Wayne contributes $25,000 in capital,and Hosek contributes $25,000 in capital.ABC suffers a loss of $5,000.What is Hosek's share of the loss?

Question

Quizplus · Accepted Answer

Under the ULPA,profits and losses are shared on the basis of the value of each partner's capital contribution unless there is a written agreement to the contrary.Since Hosek's contribution is one-fourth of the total contribution ($25,000 of total $100,000),his share of loss will be one-fourth of the total loss ($1,250 of total $5,000)incurred by ABC Limited Partnership.

Carol Is the Only General Partner in ABC Limited Partnership