Question - Turner, Roth, and Lowe are partners who share income and loss in a 1:4:5 ratio. After lengthy disagreements among the partners and several unprofitable periods, the partners decide to liquidate the partnership. Immediately before liquidation, the partnership balance sheet shows total assets, $157,200; total liabilities, $104,000; Turner, Capital, $5,100; Roth, Capital, $15,300; and Lowe, Capital, $32,800. The cash proceeds from selling the assets were sufficient to repay all but $41,000 to the creditors.
Liquidation of partnerships:
a. Calculate the loss from selling the assets.
b. Allocate the loss from part a to the partners.
c. Determine how much, if any, each partner should contribute to the partnership to cover any remaining capital deficiency.