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Determine the amount of pepper deficiency

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Question: Prior to liquidating their partnership, Pepper and Russo had capital accounts of $30,000 and $119,000, respectively. The partnership assets were sold for $55,000. The partnership had no liabilities. Pepper and Russo share income and losses equally.

a. Determine the amount of Pepper's deficiency.

b. Determine the amount distributed to Russo, assuming Pepper is unable to satisfy the deficiency.

Reference no: EM131744102

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