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Problem
Prior to liquidating their partnership, Pepper and Reynell had capital accounts of $28,000 and $113,000, respectively. The partnership assets were sold for $55,000. The partnership had no liabilities. Pepper and Reynell share income and losses equally.
a. Determine the amount of Pepper's deficiency.b. Determine the amount distributed to Reynell, assuming Pepper is unable to satisfy the deficiency.
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