Prior to liquidating their partnership, Heller and Warren had capi partnership had no liabilities. Heller and Warren share income ar

SWFT Comprehensive Volume 2019
42nd Edition
ISBN:9780357233306
Author:Maloney
Publisher:Maloney
Chapter21: Partnerships
Section: Chapter Questions
Problem 57P
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Prior to liquidating their partnership, Heller and Warren had capital accounts of $128,000 and $67,000, respectively. The partnership assets were sold for $49,000. The
partnership had no liabilities. Heller and Warren share income and losses equally.
Required:
a. Determine the amount of Warren's deficiency.
b. Determine the amount distributed to Heller assuming that Warren is unable to satisfy the deficiency.
Transcribed Image Text:Prior to liquidating their partnership, Heller and Warren had capital accounts of $128,000 and $67,000, respectively. The partnership assets were sold for $49,000. The partnership had no liabilities. Heller and Warren share income and losses equally. Required: a. Determine the amount of Warren's deficiency. b. Determine the amount distributed to Heller assuming that Warren is unable to satisfy the deficiency.
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