Question
The equal DEF partnership has the following balance sheet: Cash and other assets $1,600,000 Recourse liabilities $800,000 Capital D $300,000 Capital E $250,000 Capital F
The equal DEF partnership has the following balance sheet:
Cash and other assets $1,600,000
Recourse liabilities $800,000
Capital D $300,000
Capital E $250,000
Capital F $250,000
The profits and losses are allocated 50% to D, and 25% 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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Investments Analysis And Management
Authors: Charles P. Jones, Gerald R. Jensen
14th Edition
1119578078, 978-1119578079
