Liquidating Partnerships-Deficiency Prior to liquidating their partnership, Pepper and Russo had capital accounts of $21,000 and...

 

Transcribed Image Text:

Liquidating Partnerships-Deficiency Prior to liquidating their partnership, Pepper and Russo had capital accounts of $21,000 and $83,000, respectively. The partnership assets were sold for $38,000. The partnership had no liabilities. Pepper and Russo share income and losses equally. Required: a. Determine the amount of Pepper's deficiency. $ b. Determine the amount distributed to Russo, assuming Pepper is unable to satisfy the deficiency. $ Liquidating Partnerships-Deficiency Prior to liquidating their partnership, Pepper and Russo had capital accounts of $21,000 and $83,000, respectively. The partnership assets were sold for $38,000. The partnership had no liabilities. Pepper and Russo share income and losses equally. Required: a. Determine the amount of Pepper's deficiency. $ b. Determine the amount distributed to Russo, assuming Pepper is unable to satisfy the deficiency. $

Answer rating: 100% (QA)

Answer a The amount of peppers deficiency 38000 sale of assets Carrying value of assets ... View the full answer