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Prior to liquidating their partnership, Short and Reynell had capital accounts of $19,000 and $72,000, respectively. The partnership assets were sold for $35,000. The
Prior to liquidating their partnership, Short and Reynell had capital accounts of $19,000 and $72,000, respectively. The partnership assets were sold for $35,000. The partnership had no liabilities. Short and Reynell share income and losses equally. Required: a. Determine the amount of Short's deficiency. $ b. Determine the amount distributed to Reynell, assuming Short is unable to satisfy the deficiency. $
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