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Liquidating partnerships-deficiency
Prior to liquidating their partnership, Jolly and Haines had capital accounts of $80,000and $45,000, respectively. The partnership assets were sold for $30,000. The partnership had no liabilities. Jolly and Haines share income and losses equally.
a. Determine the amount of Haines' deficiency.
b. Determine the amount distributed to Jolly, assuming Haines is unable to satisfy the deficiency.
Prepare a report of net cash flow from operating activities.
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