Nap,Olie,and Eon,who are partners in the Josephine Company,had beginning capital balances of $35,000,$62,000,and $28,000,respectively.If the partners share income and losses based on the ratio of their beginning capital balances,Olie's share of a $250,000 partnership loss would be:

Question

Quizplus · Accepted Answer

The total beginning capital balance is $125,000 ($35,000 + $62,000 + $28,000). 
Olie's share of the beginning capital balance is $62,000. 
Therefore, Olie's ratio of the beginning capital balance is 62,000 / 125,000 = 0.496.

To find Olie's share of the $250,000 loss, we multiply the loss by Olie's ratio: 
$250,000 x 0.496 = $124,000

Therefore, Olie's share of the $250,000 partnership loss would be $(124,000).

Nap,Olie,and Eon,who Are Partners in the Josephine Company,had Beginning Capital