Prior to liquidating their partnership, Bonilla and Perez had capital accounts of $185,000 and $245,000, respectively The partnership assets were sold for $30,000 The partnership had no liabilities Bonilla and Perez share income and losses equally a Determine the amount of Bonilla 's deficiency b D...

a Bonillas equity prior to liquidation 185000 Realization of asset s ...

Prior to liquidating their partnership, Bonilla and Perez had capital accounts of $185,000 and $245,000, respectively. The

Question:

Prior to liquidating their Bonilla and Perez had capital accounts of $185,000 and $245,000, respectively. The assets were sold for $30,000. The had no liabilities. Bonilla and Perez share income and losses equally.
a. Determine the amount of Bonilla's deficiency.
b. Determine the amount distributed to Perez, assuming Bonilla is unable to satisfy the deficiency?
Partnership
A legal form of business operation between two or more individuals who share management and profits. A Written agreement between two or more individuals who join as partners to form and carry on a for-profit business. Among other things, it states...