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Please answer similar to the format of the question. Reese and Taft decided to form a partnership. Reese contributed equipment (book value $69,000), inventory (paid
Please answer similar to the format of the question.
Reese and Taft decided to form a partnership. Reese contributed equipment (book value $69,000), inventory (paid $36,000), and $22,000 cash. The equipment and inventory have a current market value of $54,000 and $27,000, respectively. Reese also had a debt of $26,000 for the equipment. Taft contributed office equipment (book value $48,000) and cash of $50,000. The current market value of the office equipment is $24,000. The two partners fail to agree on a profit-and-loss-sharing ratio. For the first month (June), the partnership lost $4,500. 1. How much of this loss goes to Reese? How much goes to Taft? 2. The partners withdrew no assets during June. What is each partner's Capital balance at June 30? Prepare a T-account for each partner's Capital. 1. How much of this loss goes to Reese? How much goes to Taft? Reese's $ $ Taft's 2. The partners withdrew no assets during June. What is each partner's Capital balance at June 30? Prepare a T-account for each partner's Capital. (Leave any unused cells blank.) Reese, Capital Taft, CapitalStep by Step Solution
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