Prior to liquidating their partnership, Jolly and Haines had capital accounts of $80,000 and $45,000, respectively The partnership assets were sold for $30,000 The partnership had no liabilities Jolly and Haines share income and losses equally a Determine the amount of Haines deficiency b Determine...

a Haines equity prior to liquidation 45000 Realization of asset sales ...

Prior to liquidating their partnership, Jolly and Haines had capital accounts of $80,000 and $45,000, respectively. The

Question:

Prior to liquidating their Jolly and Haines had capital accounts of $80,000 and $45,000, respectively. The assets were sold for $30,000. The had no liabilities. Jolly and Haines share income and losses equally.
a. Determine the amount of Haines’ deficiency.
b. Determine the amount distributed to Jolly, assuming Haines 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...