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Liquidating partnerships-deficiency
Prior to liquidating their partnership, Chow and Fuentes had capital accounts of $85,000 and $165,000, respectively. The partnership assets were sold for $45,000. The partnership had no liabilities. Chow and Fuentes share income and losses equally.
a. Determine the amount of Chow's deficiency.
b. Determine the amount distributed to Fuentes, assuming Chow is unable to satisfy the deficiency.
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