Prior to liquidating their partnership, Samuel and Brian had capital accounts of $60,000 and $240,000, respectively .The partnership assets were sold for $120,000. The partnership had no liabilities. Samuel and Brian share income and losses equally.. Required: a. Determine the amount of Samuel's deficiency b. Determine the amount distributed to Brian, assuming Samuel is unable to satisfy the deficiency
Prior to liquidating their partnership, Samuel and Brian had capital accounts of $60,000 and $240,000, respectively .The partnership assets were sold for $120,000. The partnership had no liabilities. Samuel and Brian share income and losses equally.. Required: a. Determine the amount of Samuel's deficiency b. Determine the amount distributed to Brian, assuming Samuel is unable to satisfy the deficiency
Chapter10: Partnerships: Formation, Operation, And Basis
Section: Chapter Questions
Problem 59P
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Transcribed Image Text:Prior to liquidating their partnership, Samuel and Brian had capital accounts of $60,000
and $240,000, respectively .The partnership assets were sold for $120,000. The
partnership had no liabilities. Samuel and Brian share income and losses equally..
Required:
a. Determine the amount of Samuel's deficiency
b. Determine the amount distributed to Brian, assuming Samuel is unable to satisfy the
deficiency
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