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Prior to liquidating their partnership, Samuel and Brian had capital accounts of $120,000 and $480,000, respectively. The partnership assets were sold for $240,000. The partnership
Prior to liquidating their partnership, Samuel and Brian had capital accounts of $120,000 and $480,000, respectively. The partnership assets were sold for $240,000. The partnership had no liabilities. Samuel and Brian share income and losses equally.
Required:
a. Determine the amount of Samuels deficiency
b. Determine the amount distributed to Brian, assuming Samuel is unable to satisfy the deficiency
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