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The equal DEF partnership has the following balance sheet: Cash and other assets Recourse liabilities Capital D Capital E Capital F $400,000 $100,000 $100,000 $100,000
The equal DEF partnership has the following balance sheet: Cash and other assets Recourse liabilities Capital D Capital E Capital F $400,000 $100,000 $100,000 $100,000 $100,000 The profits and losses are allocated 40% to D, and 30% each to E and F. Under the partnership agreement there is a capital account deficit restoration provision. How should the liability be allocated?
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