Antonio and Barbara are partners who share income in the ratio of 1:2 and have capital balances of $40,000 and $70,000, respectively, at the time they decide to terminate the partnership. After all noncash assets are sold and all liabilities are paid, there is a cash balance of $80,000. What amount of loss on realization should be allocated to Barbara?

Loss on realization = ($40000 + $70000) - $80000

Loss on realization = $30,000

Loss on realization should be allocated to Barbara = 30000 * 2 / 3 = $20000

$20,000 should be allocated to Barbara as the amount of loss on realization.

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