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Beauty and Beast formed a partnership on May 1, 2015 and agreed to share profits and losses equally. However, on February 11th, 2021, they decided
Beauty and Beast formed a partnership on May 1, 2015 and agreed to share profits and losses equally. However, on February 11th, 2021, they decided to liquidate their partnersitp. Assuming that after all noncash assets have been sold, the following account balances are available: Debit Credit $39,000 $33,000 Cash Accounts Payable Loan Payable to Beast Beast, Capital Beauty Capital 4,000 7.000 9,000 Assume that Beast is personally solvent. To be fair to all partners, available cash should be distributed with 533,000 for outside debt (i.e. accounts payable) and then: A. $6,000 to Beauty and so to Beast. B. Beast should make additional investment to the partnership to eliminate his capital deficit before any cash can be distributed to the partners. C. $3,000 to Beauty and $3,000 to Beast. D. $4,000 to Beast and $2,000 to Beauty
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