Turner, Roth, and Lowe are partners who share income and loss in a 1:4:5 ratio (in percents: Turner, 10%; Roth, 40%; and Lowe, 50%). The partners decide to liquidate the partnership. Immediately before liquidation, the partnership balance sheet shows total assets, $140,400; total liabilities, $90,000; Turner, Capital, $3,700; Roth, Capital, $14,600; and Lowe, Capital, $32,100. Cash received from selling the assets was sufficient to repay all but $34,000 to the creditors.

Required: a. Calculate the loss from selling the assets. b. Allocate the loss from part a to the partners. c. Determine how much 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.

Part A

Liabilities before liquidation
Proceeds from sale of assets (paid to creditors)
Remaining liabilities
Proceeds from sale of assets
Book value of assets sold
Gain on sale of assets

• Part B
• Required B
• Required C

• Allocate the loss from part a to the partners. (Losses and deficits should be indicated with a minus sign.)

  		Turner		Roth		Lowe	Total
  Initial capital balances		$3,700		$14,600		$32,100	$50,400
  Allocation of gains (losses)	1/10		4/10		5/10		0
  Capital balances after gains (losses)

• Part C
• Required C

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

  		Turner		Roth		Lowe	Total
  Amount to be contributed to the partnership: