Liquidating PartnershipsDeficiency

Prior to liquidating their partnership, Short and Bain had capital accounts of $10,000 and $37,000, respectively. The partnership assets were sold for $17,000. The partnership had no liabilities. Short and Bain share income and losses equally.

Required:

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

b. Determine the amount distributed to Bain, assuming Short is unable to satisfy the deficiency.