Alpha and Beta are partners who share income in the ratio of 1:2 and have capital balances of $42,600 and $84,000, 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 $89,700. What amount of loss on realization should be allocated to Alpha? a. $89,700 b. $29,900 c. $12,300 d. $42,600

Alpha and Beta are partners who share income in the ratio of 1:2 and have capital balances of $42,600 and $84,000, 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 $89,700. What amount of loss on realization should be allocated to Alpha?

a.$89,700

b.$29,900

c.$12,300

d.$42,600