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Liquidating Partnerships-Deficiency Prior to liquidating their partnership, Short and Morrison had capital accounts of $17,000 and $62,000, respectively. The partnership assets were sold for
Liquidating Partnerships-Deficiency Prior to liquidating their partnership, Short and Morrison had capital accounts of $17,000 and $62,000, respectively. The partnership assets were sold for $29,000. The partnership had no liabilities. Short and Morrison share income and losses equally. Required: a. Determine the amount of Short's deficiency. b. Determine the amount distributed to Morrison, assuming Short is unable to satisfy the deficiency.
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