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, $157,200; total liabilities, $104,000; Turner, Capital, $5,100; Roth, Capital, $15,300; and Lowe, Capital, $32,800. The cash proceeds from selling the assets were sufficient to repay all but $41,000 to the creditors.

Liquidation of partnerships:

a.Calculate the loss from selling the assets.

b.Allocate the loss from partato the partners.

c.Determine how much, if any, each partner should contribute to the partnership to cover any remaining capital deficiency.

Part A: 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

Part B: Allocate the loss from part a to the partners.

Initial Capital Balances (Turner, Roth, Lowe, Total)

Allocation of gains or losses (Turner, Roth, Lowe, Total)

Capital balances after gains or losses (Turner, Roth, Lowe, Total)

Part C: Determine how much, if any, each partner should contribute to the partnership to cover any remaining capital deficiency.

Amount to be contributed to the partnership (Turner, Roth, Lowe, Total)