White, Sands, and Luke has the following capital balances and profit and loss ratios: $60,000 (30%), $100,000 (20%) and $200,000 (50%). The partnership has received a predistribution plan. How would $200,000 be distributed?

White :12,000 Sands: 68,000 and Luke 120,000

Explanation:

given data

                                      White            Sands                       Luke  

Balance Capital             60000           100000                   200000  

Income Sharing               30%               20%                        50%  

Maximum Loss                200000         500000               400000

solution

so here when here 200000 is received so  

                                      White            Sands                       Luke      

first 20000                         0               20000    

next 140000                       0               40000                    100000  

balance 40000               12000          8000                       20000  

Total partner each          12000          68000                  120000

answer; maintain a safe following distance;

u = 30

continuing your method

= +

subtract from both sides

= - thus

= -

= ⇒ u = 30