Financial Accounting
Financial Accounting
15th Edition
ISBN: 9781337272124
Author: Carl Warren, James M. Reeve, Jonathan Duchac
Publisher: Cengage Learning
Question
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Chapter 12, Problem 6PEA

a.

To determine

Determine amount of B’s deficiency.

b.

To determine

Explain amount distributed to W.

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Prior to liquidating their partnership, Greer and Murphy had capital accounts of $70,000 and $30,000, respectively. The partnership assets were sold for $25,000. The partnership had no liabilities. Greer and Murphy share income and losses equally. a. Determine the amount of Murphy’s deficiency. b. Determine the amount distributed to Greer, assuming Murphy is unable to satisfy the deficiency. Liquidatingpartnerships— deficiency
Prior to liquidating their partnership, Wakefield and Barns had capital accounts of $105,000 and $55,000, respectively. The partnership assets were sold for $40,000. The partnership had no liabilities. Wakefield and Barns share income and losses equally.a. Determine the amount of Barns’s deficiency.b. Determine the amount distributed to Wakefield, assuming that Barns is unable to satisfy the deficiency.
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.

Chapter 12 Solutions

Financial Accounting

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