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1. Prior to liquidating their partnership, Min and Alvarez had capital accounts of $120,000 and $200,000, respectively. The partnership assets were sold for $60,000. The partnership had no liabilities. Min and Alvarez share income and losses equally.
(a) Determine the amount of Min's deficiency.
(b) Determine the amount distributed to Alvarez, assuming Min is unable to satisfy the deficiency.
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