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1. Prior to liquidating their partnership, Greer and Murphy had capital accounts of $70,000 and $30,000, respectively. The partnership assets were sold for $25,000. The partnership had no liabilities. Greer and Murphy share income and losses equally.
(a) Determine the amount of Murphy's deficiency.
(b) Determine the amount distributed to Greer, assuming Murphy is unable to satisfy the deficiency .
However, a building (with a nine year remaining life) in Brey's accounting records was undervalued by 18,000. Pitino assigned the rest of the excess fair value over book value to Brey's patended technology (Six year remaining life).
Improve your verbal communication - You-language is a way of speaking that projects responsibility onto another person and tends to be judgmental.
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