Distribution from liquidation of the partnership

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Liquidating partnerships

Prior to liquidating their partnership, Fowler and Ericson had capital accounts of $26,000 and $40,000, respectively. Prior to liquidation, the partnership had no cash assets other than what was realized from the sale of assets. These partnership assets were sold for $86,000. The partnership had $12,000 of liabilities. Fowler and Ericson share income and losses equally. Determine the amount received by Fowler as a final distribution from liquidation of the partnership.

Reference no: EM13534139

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