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Liquidating PartnershipsDeficiency Prior to liquidating their partnership, Pepper and Morrison had capital accounts of $28,000 and $100,000, respectively. The partnership assets were sold for $46,000.
Liquidating PartnershipsDeficiency
Prior to liquidating their partnership, Pepper and Morrison had capital accounts of $28,000 and $100,000, respectively. The partnership assets were sold for $46,000. The partnership had no liabilities. Pepper and Morrison share income and losses equally.
Required:
a. Determine the amount of Pepper's deficiency. $
b. Determine the amount distributed to Morrison, assuming Pepper is unable to satisfy the deficiency. $
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