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Problem - Liquidating partnerships-deficiency - Prior to liquidating their partnership, Jolly and Haines had capital accounts of $80,000 and $45,000, respectively. The partnership assets were sold for $30,000. The partnership had no liabilities. Jolly and Haines share income and losses equally.
Required -
a. Determine the amount of Haines' deficiency.
b. Determine the amount distributed to Jolly, assuming Haines is unable to satisfy the deficiency.
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