Answer:
$27,000
Step-by-step explanation:
The partnership's loss is allocated among the partners based on the ratio of their financial contributions to the partnership. Let's calculate the ratio for each partner:
Wilson's ratio = Wilson's contribution / Total contributions = $135,000 / ($135,000 + $81,000 + $27,000) = $135,000 / $243,000 = 0.5556
Pickett's ratio = Pickett's contribution / Total contributions = $81,000 / ($135,000 + $81,000 + $27,000) = $81,000 / $243,000 = 0.3333
Nelson's ratio = Nelson's contribution / Total contributions = $27,000 / ($135,000 + $81,000 + $27,000) = $27,000 / $243,000 = 0.1111
Now, we can allocate the loss to each partner based on their respective ratios:
Nelson's allocated loss = Nelson's ratio * Total loss = 0.1111 * $243,000 = $27,000
Therefore, the amount of the partnership's loss allocated to Nelson is $27,000.