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Prior to liquidating their partnership, Short and Morrison had capital accounts of $25,000 and $102,000, respectively. The partnership assets were sold for $47,000. The partnership
Prior to liquidating their partnership, Short and Morrison had capital accounts of $25,000 and $102,000, respectively. The partnership assets were sold for $47,000. The partnership had no liabilities. Short and Morrison share income and losses equally.
Required:
a. Determine the amount of Short's deficiency. $fill in the blank 1
b. Determine the amount distributed to Morrison, assuming Short is unable to satisfy the deficiency.
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