Realization expenses shared in P/L ratio Steps:

• P/L sharing ratio L:M = 1:2 (total parts = 3).
• Realization expenses total $6000, treated as a loss.
• L's portion = 1 part out of 3.
• Calculate: (1/3) × $6000 =$2000. Why B is correct:
• Matches L's 1/3 share of the $6000 loss per the P/L ratio. Why the others are wrong:
• A $5000: Exceeds L's 1/3 share; no basis in ratio.
• C $6000: Assumes L bears full expense, ignoring sharing.
• D $60000: Confuses with non-current asset book value, irrelevant to expenses. Final answer: B