Question
Prior to liquidating their partnership, Pepper and Reynell had capital accounts of $20,000 and $78,000, respectively. The partnership assets were sold for $36,000. The partnership
Prior to liquidating their partnership, Pepper and Reynell had capital accounts of $20,000 and $78,000, respectively. The partnership assets were sold for $36,000. The partnership had no liabilities. Pepper and Reynell share income and losses equally.
a. Determine the amount of Pepper's deficiency. $
b. Determine the amount distributed to Reynell, assuming Pepper is unable to satisfy the deficiency. $
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Financial Accounting A Global Perspective
Authors: Rod Monger
1st Edition
0470518405, 978-0470518403
