Question
Prior to liquidating their partnership, Bonilla and Perez had capital accounts of $185,000 and $245,000, respectively. The partnership assets were sold for $30,000. The partnership
Prior to liquidating their partnership, Bonilla and Perez had capital accounts of $185,000 and $245,000, respectively. The partnership assets were sold for $30,000. The partnership had no liabilities. Bonilla and Perez share income and losses equally.
a. Determine the amount of Bonilla's deficiency.
b. Determine the amount distributed to Perez, assuming Bonilla is unable to satisfy the deficiency.
Hiro has a capital balance of $75,000 after adjusting assets to fair market value. Marone contributes $20,000 to receive a 40% interest in a new An unincorporated business form consisting of two or more persons conducting business as co-owners for profit.partnership with Hiro.
Determine the amount and recipient of the partner bonus.
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