Capital balances after gains (losses) Initial capital balances Allocation of gains (losses) Capital balances after gains (losses) Allocation of Lowe's Deficit to Turner and Roth Answer is complete but not entirely correct. Turner Roth $ 6,500 $ 16,000 1/10 10,400 4/10 $ (3,900) 41,600 5/10 $(25,600) Lowe Total $ 33,500 $ 56,000 52,000 X 104,000 $(18,500) $160,000 Turner Roth Lowe Total Allocation of Lowe's deficit to Turner and Roth 1/5 (5,344) 4/5 Capital balances after deficit allocation $ (9,244) (13,156)X $(38,756) 18,500 0 $ 0 $(48,000) Amount to be repaid to partnership $ 7,600 $ 40,400 $ 18,500 $ (48,000)