Cory,Brooke,and Amy share profits and losses in a 2:1:1 ratio,respectively,in their partnership.The assets are to be reduced $10,000 in value when Brooke wishes to leave the partnership.If each partner had a capital balance of $30,000 before Brooke's notification of withdrawal,what amount should Brooke be allowed to withdraw from the partnership?

Question

Quizplus · Accepted Answer

Brooke's share of the $10,000 reduction in assets is $2,500 (1/4 of $10,000). Therefore, her capital balance after the reduction is $30,000 - $2,500 = $27,500.

Cory,Brooke,and Amy Share Profits and Losses in a 2:1:1 Ratio,respectively,in