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Partners F and G receive an interest allowance of $10,000 and $15,000, respectively, and divide the remaining profits and losses in a 3:1 ratio. If
Partners F and G receive an interest allowance of $10,000 and $15,000, respectively, and divide the remaining profits and losses in a 3:1 ratio. If the company sustained a net loss of $11,000 during the year, what is the effect on G's capital?
a. $6,000 increase
b. $15,000 increase
c. $10,500 decrease
d. $4,000 decrease
e. $2,667 decrease
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