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PSS Company is in liquidation, after several years of losses. They managed to sell the noncash assets for only $40,000, well below their carrying value.
PSS Company is in liquidation, after several years of losses. They managed to sell the noncash assets for only $40,000, well below their carrying value. At that point, before liabilities of $28,000 are paid, there is only $75,000 in cash. If Pauls and Sams capital accounts have credit balances of $30,000 and $20,000, what must the balance be in the other partners capital account?
$3,000 credit
not enough information provided
$3,000 debit
$25,000 credit
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