Franco and Jason share income and losses in a 2:1 ratio after allowing for salaries to Franco of $15,000 and $30,000 to Jason. If the partnership suffers a $15,000 loss, by how much would Jason's capital account increase?

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After accounting for the salaries, the partnership has a $60,000 loss ($15,000 loss + $15,000 salary to Franco + $30,000 salary to Jason). Franco and Jason share this loss in a 2:1 ratio, meaning Franco absorbs $40,000 and Jason absorbs $20,000. Jason's capital account increases by $30,000 (salary) - $20,000 (loss share) = $10,000.

Franco and Jason Share Income and Losses in a 2:1