Liquidating Partnerships

Prior to liquidating their partnership, Todd and Ericson had capital accounts of $61,000 and $92,000, 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 $171,000. The partnership had $5,000 of liabilities. Todd and Ericson share income and losses equally.

Determine the amount received by Todd as a final distribution from liquidation of the partnership. $fill in the blank 1

Liquidating PartnershipsDeficiency

Prior to liquidating their partnership, Pepper and Haines had capital accounts of $11,000 and $46,000, respectively. The partnership assets were sold for $23,000. The partnership had no liabilities. Pepper and Haines share income and losses equally.

Required:

a. Determine the amount of Pepper's deficiency. $fill in the blank 1

b. Determine the amount distributed to Haines, assuming that Pepper is unable to satisfy the deficiency. $fill in the blank 2