eek 4 - June 6th - June 12th - x CengageNOWv2 | Online teachit x + /takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLocator=&inprogress=false eBook Show Me How Print Item Liquidating Partnerships-Deficiency Prior to liquidating their partnership, Short and Morrison had capital accounts of $20,000 and $75,000, respectively. The partnership assets were sold for $35,000. The partnership had no liabilities. Short and Morrison share income and losses equally. Required: a. Determine the amount of Short's deficiency. X b. Determine the amount distributed to Morrison, assuming Short is unable to satisfy the deficiency. X Feedback Check My Work a 1 Begin with Short's equity prior to liquidation. 2 Sell the assets and recognize any gain or loss 3. Allocate the gain/loss to partner capital accounts based on equal share. 4. Add beginning equity plus allocated gain/loss to determine liquidation deficiency. b. If a partner is unable to satisfy a deficiency, the balance is shared among the remaining partners