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X, Y, and Z are equal partners in the XYZ partnership and share profits and losses accordingly. At the end of 20X1, the partnership's capital
X, Y, and Z are equal partners in the XYZ partnership and share profits and losses accordingly. At the end of 20X1, the partnership's capital accounts reflect the following numbers due to a special allocation of depreciation. Capital X $40,000, Capital Y (10,000, Capital Z (20,000). If all the assets are sold for $10,000, which of the following statements is true? A. X shares in Y and Z's contribution, B. X takes Y and Z's entire contribution, C. Y contributes nothing, D.Y shares in Z's capital contribution. Which answer is correct (B) or (D)?
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