Franco and Jason share income and losses in a 2:1 ratio after allowing for salaries of...
Franco and Jason share income and losses in a 2:1 ratio after allowing for salaries of $13,500 and $39,000, respectively. If the partnership suffers a $20,400 loss, by how much would Jason's capital account increase?
a.$27,700
b.$39,000
c.$32,200
d.$14,700
Homework Answers
| Franco | Jason | Total | |
| Salary | 13500 | 39000 | 52500 |
| Loss after salary | 72900 | =20400+52500 | |
| Loss allocated to Jason | 24300 | =72900*1/3 | |
| Jason's capital account increase | 14700 | =39000-24300 | |
| Option D $14,700 is correct |
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