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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, $152,400; total liabilities, $100,000; Turner, Capital, $4,700; Roth, Capital, $15,100; and Lowe, Capital, $32,600. The cash proceeds from selling the assets were sufficient to repay all but $39,000 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 B Required 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 Required A Required B Required Allocate the loss from part a to the partners. (Losses and deficits should be indicated with a minus sign.) Turner $ 4,700 Roth 15,100 Lowe 32,600 Total 52,400 $ $ $ Initial capital balances Allocation of gains (losses) Capital balances after gains (losses) Required A Required B Required C Determine how much, if any, each partner should contribute to the partnership to cover any remaining capital deficiency. Turner Roth Lowe Total Amount to be contributed to the partnership