Answer:
The computation of given question is shown below:-
Explanation:
a. Bracken Louden Menser
Profit/loss ratio 50% 25% 25%
Capital balances before sale $31,400 $7,400 $13,200
Loss from sale $16,000
Loss Allocation ($8,000) ($4,000) ($4,000)
Capital balance after sales $23,400 $3,400 $9,200
Distribution of cash $23,400 $3,400 $9,200
b.
Bracken Louden Menser
Capital balance $31,400 $7,400 $13,200
Loss from sale (32,000) ($16,000) ($8,000) ($8,000)
After sales Capital balance $15,400 ($600) $5,200
capital deficit allocation ($400) ($200)
New capital balance $15,000 $5,000
Distribution cash $15,000 0 $5,000
c.
Bracken Louden Menser
Profit/ loss ratio 50% 25% 25%
Capital balance before sale $31,400 $7,400 $13,200
Loss from sale 48,800
Loss allocation ($24,400) ($12,200) ($12,200)
After sale capital balance $7,000 ($4,800) $1,000
Allocate louden's deficit ($3,200) ($1,600)
New capital balance $3,800 ($600)
Allocate Menser's deficit ($600)
Distribution cash $3,200
