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Turner, Roth, and Lowe are partners who share income and loss in a 2:3:5 ratio (in...

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Accounting

Turner, Roth, and Lowe are partners who share income and loss ina 2:3:5 ratio (in percents: Turner, 20%; Roth, 30%; and Lowe, 50%).The partners decide to liquidate the partnership. Immediatelybefore liquidation, the partnership balance sheet shows totalassets, $133,200; total liabilities, $84,000; Turner, Capital,$3,100; Roth, Capital, $14,300; and Lowe, Capital, $31,800. Cashreceived from selling the assets was sufficient to repay all but$31,000 to the creditors. Required: a. Calculate the loss fromselling the assets. b. Allocate the loss from part a to thepartners. c. Determine how much each partner should contribute tothe partnership to cover any remaining capital deficiency.

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4.4 Ratings (880 Votes)
Answer given data total assets book value 133200 total liabilities before liquidation 84000 liability towards the creditors 31000 partners sharing ratio 2 3 5 a calculate    See Answer
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