Required information

Use the following information for the Exercises below.

[The following information applies to the questions displayed below.] Turner, Roth, and Lowe are partners who share income and loss in a 1:4:5 ratio. After lengthy disagreements among the partners and several unprofitable periods, the partners decide to liquidate the partnership. Immediately before liquidation, the partnership balance sheet shows total assets, $174,000; total liabilities, $118,000; Turner, Capital, $6,500; Roth, Capital, $16,000; and Lowe, Capital, $33,500. The cash proceeds from selling the assets were sufficient to repay all but $48,000 to the creditors.

Exercise 12-11 Liquidation of partnership LO P5

Required: a. Calculate the loss from selling the assets. b. Allocate the loss from part a to the partners. c. Determine how much, if any, each partner should contribute to the partnership to cover any remaining capital deficiency.

Required A Required BRequired C calculate the loss from selling the assets. Liabilities before liquidation Proceeds from sale of assets (paid to creditors) Remaining liabilities Proceeds from sale of assets Book value of assets sold