Gwen and Mark are equal partners in the GM partnership They share profits equally, but they agree to allocate 70 of the losses to Gwen and 30 to Mark Their balance sheet includes the following Cash $300,000 Note Payable $200,000 Capital, Gwen $40,000 Capital, Mark $60,000 The note payable is a reco...

The liability will be allocated to Gwen as follows Beginning capita ...

Gwen and Mark are equal partners in the GM partnership. They share profits equally, but they agree

Question:

Gwen and Mark are equal partners in the GM partnership. They share profits equally, but they agree to allocate 70% of the losses to Gwen and 30% to Mark. Their includes the following:
Cash...........................................$300,000
Note Payable.................................$200,000
Capital, Gwen.................................$40,000
Capital, Mark..................................$60,000
The note payable is a recourse debt. How much of the liability is allocable to Gwen?
a. $30,000.
b. $40,000.
c. $100,000.
d. $140,000.
e. $170,000.
Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...