Xavier and Yolanda have original investments of $50,000 and $100,000, respectively, in a partnership. The articles of partnership include the following provisions regarding the division of net income: interest on original investment at 10%; salary allowances of $27,000 and $18,000, respectively; and the remaining income equally. How much of the net loss of $6,000 is allocated to Yolanda?

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Yolanda bears $5,000 of the net loss. First, interest on investments is calculated: Xavier gets $5,000 (10% of $50,000) and Yolanda gets $10,000 (10% of $100,000). Then, salary allowances are added: Xavier's total is $32,000 ($5,000 + $27,000) and Yolanda's is $28,000 ($10,000 + $18,000). Since there's a net loss, no remaining income is divided, and the loss is absorbed by their initial allocations. The loss is distributed in reverse order of profit allocation, affecting Yolanda more due to her higher initial income allocation, resulting in her bearing $5,000 of the loss.

Xavier and Yolanda Have Original Investments of $50,000 and $100,000