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 (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.

a. Calculate the loss from selling the assets.

Calculate the loss from selling the assets. ( I filled in these answers not sure if they are correct)

Liabilities before liquidation	$90,000
Proceeds from sale of assets (paid to creditors)	56,000
Remaining liabilities	$34,000
Proceeds from sale of assets	$56,000
Book value of assets sold	140,400
Loss on sale of assets	$(84,400)

b. Allocate the loss from part a to the partners.

• Required B
• Required C

Allocate the loss from part a to the partners. (Losses and deficits should be indicated with a minus sign.) ( I filled in these answers not sure they are correct)

		Turner		Roth		Lowe	Total
Initial capital balances		$3,700		$14,600		$32,100	$50,400
Allocation of gains (losses)	1/10	(8,440)	4/10	(33,760)	5/10	(42,200)	(84,400)
Capital balances after gains (losses)		$(4,740)		$(8,040)		$(23,900)	$(34,000)

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

• 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:							$0