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Ames and Barton are partners who share income in the ratio of 1:2 and have capital balances of $40,000 and $70,000, respectively, at the time they decide to terminate the partnership. After all noncash assets are sold and all liabilities are paid, there is a cash balance of $80,000. What amount of loss on realization should be allocated to Barton?
a. $80,000
b. $30,000
c. $10,000
d. $20,000
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Answers: 3
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Ames and Barton are partners who share income in the ratio of 1:2 and have capital balances of $40,0...
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