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 Murphys deficiency (b) Dete...

a Determining the amount of Murphys deficiency b Determining the amount distri ...

Prior to liquidating their partnership, Greer and Murphy had capital accounts of $70,000 and $30,000, respectively. The

Question:

Prior to liquidating their Greer and Murphy had capital accounts of $70,000 and $30,000, respectively. The assets were sold for $25,000. The 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

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...