Assume that the S & B partnership agreement gave Steely 60% and Breck 40% of partnership income and losses. The partnership lost $27,000 in the current period. This implies that Steely's share of the loss equals $16,200, and Breck's share equals $10,800.

Question

Quizplus · Accepted Answer

Since Steely owns 60% of the partnership, she is responsible for 60% of the losses. 60% of $27,000 is $16,200. Similarly, Breck's share of loss is 40% of $27,000, which comes out to be $10,800. Therefore, the statement is true.

Assume That the S & B Partnership Agreement Gave Steely