Liquidating Partnerships

Prior to liquidating their partnership, Todd and Dunn had capital accounts of $66,000 and $101,000, respectively. Prior to liquidation, the partnership had no cash assets other than what was realized from the sale of assets. These partnership assets were sold for $149,000. The partnership had $8,000 of liabilities. Todd and Dunn share income and losses equally.

Determine the amount received by Todd as a final distribution from liquidation of the partnership. $

Prior to liquidating their partnership, Pepper and Reynell had capital accounts of $8,000 and $32,000, respectively. The partnership assets were sold for $16,000. The partnership had no liabilities. Pepper and Reynell share income and losses equally.

Required:

a. Determine the amount of Pepper's deficiency. $

b. Determine the amount distributed to Reynell, assuming Pepper is unable to satisfy the deficiency. $