Question

The partnership of Abbott and Brown split profits 1/4 to Abbott and 3/4 to Brown. There is no provision for losses. The partnership has a net loss of $200,000. What is Browns share of the loss?

Answer 1

Brown's share of the loss in the partnership is $150,000.

Step-by-step explanation:

To determine Brown's share of the loss in the partnership, we need to know the total loss and the distribution ratio. In this case, the partnership has a net loss of $200,000. The distribution ratio is 1/4 to Abbott and 3/4 to Brown.

To find Brown's share of the loss, we multiply the total loss by Brown's share of the distribution ratio:

Brown's share = $200,000 * (3/4) = $150,000.

Therefore, Brown's share of the loss is $150,000.