Paul and Chris cannot make the P.C. Partnership a success and are forced to dissolve, or liquidate, the business. Determine each partners ending capital balance for the following situation: Partnership assets are sold for $20,000 loss. There are no liabilities to be satisfied. The current capital balance for Paul is $60,000 and the current capital balance for Chris is $15,000. The Partnership Agreement specifies the following division of profits or losses: Paul 40% Chris 60% Ending Capital Balance for Paul _____________________________ Ending Capital Balance for Chris _____________________________

Determine which of the following is true regarding this dissolution: No Capital Deficiency With Capital Deficiency