The equal DEF partnership has the following balance sheet: Cash and other assets $400,000 Recourse liabilities $100,000 Capital – D $100,000 Capital – E $100,000 Capital – F $100,000 The profits and losses are allocated 40% to D, and 30% each to E and F. Under the partnership agreement there is a capital account deficit restoration provision. How should the liability be allocated?
The equal DEF partnership has the following balance sheet: Cash and other assets $400,000 Recourse liabilities $100,000 Capital – D $100,000 Capital – E $100,000 Capital – F $100,000 The profits and losses are allocated 40% to D, and 30% each to E and F. Under the partnership agreement there is a capital account deficit restoration provision. How should the liability be allocated?
Chapter21: Partnerships
Section: Chapter Questions
Problem 57P
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Question
The equal DEF
Cash and other assets $400,000
Recourse liabilities $100,000
Capital – D $100,000
Capital – E $100,000
Capital – F $100,000
The
partnership agreement there is a capital account deficit restoration provision. How
should the liability be allocated?
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