Turner, Roth, and Lowe are partners who share income and loss in a 1:4:5 ratio (in percents: Turner, 10% ; Roth, 40%; and Lowe, 50%). The partners decide to liquidate the partnership. Immediately before liquidation, the partnership balance sheet shows total assets, $142,800; total liabilities, $92,000; Turner, Capital, $3,900; Roth, Capital, $14,700; and Lowe, Capital, $32,200. The liquidation resulted in a loss of $85,800. Assume that the Turner, Roth, and Lowe partnership is a limited partnership. Turner and Roth are general partners. Lowe is a limited partner, meaning any remaining deficiency in Lowe's capital account is covered by Turner and Roth. Determine how much, if any, each partner should contribute to the partnership to cover any remaining capital deficiency. Note: Do not round intermediate calculations. Losses and deficits amounts to be deducted should be entered with a minus sign. Capital balances after gains (losses) Initial capital balances Allocation of gains (losses) Capital balances after gains (losses) Allocation of Lowe's Deficit to Turner and Roth Allocation of Lowe's deficit to Turner and Roth Capital balances after deficit allocation. Amount to be repaid to partnership 1/10 Turner $ $ Turner $ 3,900 (8,580) 4/10 (4,680) (4,680) + Roth $ 14,700 (34,320) 5/10 $ (19,620) Roth $ (19,620) Lowe $ Total 32,200 $ 50,800 (42,900) $ (10,700) Lowe (85,800) $ (35,000) Total $ (24,300) $ (24,300)
Turner, Roth, and Lowe are partners who share income and loss in a 1:4:5 ratio (in percents: Turner, 10% ; Roth, 40%; and Lowe, 50%). The partners decide to liquidate the partnership. Immediately before liquidation, the partnership balance sheet shows total assets, $142,800; total liabilities, $92,000; Turner, Capital, $3,900; Roth, Capital, $14,700; and Lowe, Capital, $32,200. The liquidation resulted in a loss of $85,800. Assume that the Turner, Roth, and Lowe partnership is a limited partnership. Turner and Roth are general partners. Lowe is a limited partner, meaning any remaining deficiency in Lowe's capital account is covered by Turner and Roth. Determine how much, if any, each partner should contribute to the partnership to cover any remaining capital deficiency. Note: Do not round intermediate calculations. Losses and deficits amounts to be deducted should be entered with a minus sign. Capital balances after gains (losses) Initial capital balances Allocation of gains (losses) Capital balances after gains (losses) Allocation of Lowe's Deficit to Turner and Roth Allocation of Lowe's deficit to Turner and Roth Capital balances after deficit allocation. Amount to be repaid to partnership 1/10 Turner $ $ Turner $ 3,900 (8,580) 4/10 (4,680) (4,680) + Roth $ 14,700 (34,320) 5/10 $ (19,620) Roth $ (19,620) Lowe $ Total 32,200 $ 50,800 (42,900) $ (10,700) Lowe (85,800) $ (35,000) Total $ (24,300) $ (24,300)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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[The following information applies to the questions displayed below.]
Turner, Roth, and Lowe are partners who share income and loss in a 1:4:5 ratio (in percents: Turner, 10%; Roth, 40%; and
Lowe, 50%). The partners decide to liquidate the partnership. Immediately before liquidation, the partnership balance
sheet shows total assets, $142,800; total liabilities, $92,000; Turner, Capital, $3,900; Roth, Capital, $14,700; and Lowe,
Capital, $32,200. The liquidation resulted in a loss of $85,800.
Assume that the Turner, Roth, and Lowe partnership is a limited partnership. Turner and Roth are general partners. Lowe is a limited
partner, meaning any remaining deficiency in Lowe's capital account is covered by Turner and Roth. Determine how much, if any, each
partner should contribute to the partnership to cover any remaining capital deficiency.
Note: Do not round intermediate calculations. Losses and deficits amounts to be deducted should be entered with a minus sign.
Capital balances after gains (losses)
Initial capital balances
Allocation of gains (losses)
Capital balances after gains (losses)
Allocation of Lowe's Deficit to Turner and Roth
Allocation of Lowe's deficit to Turner and Roth
Capital balances after deficit allocation
Amount to be repaid to partnership
1/10
Turner
$
$
Turner
3,900
(8,580) 4/10
(4,680)
$ (4,680)
+
Roth
$
14,700
(34,320) 5/10
$ (19,620)
Roth
$ (19,620)
Lowe
$
Total
32,200 $
50,800
(42,900) (85,800)
$ (10,700) $ (35,000)
Lowe
Total
$ (24,300)
$ (24,300)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F11365ea8-e765-4b65-aee9-26a305e3165c%2Fe1c7a5e1-9207-4ec3-8677-b5054c3cb67f%2F6f4qcy8_processed.jpeg&w=3840&q=75)
Transcribed Image Text:!
Required information
[The following information applies to the questions displayed below.]
Turner, Roth, and Lowe are partners who share income and loss in a 1:4:5 ratio (in percents: Turner, 10%; Roth, 40%; and
Lowe, 50%). The partners decide to liquidate the partnership. Immediately before liquidation, the partnership balance
sheet shows total assets, $142,800; total liabilities, $92,000; Turner, Capital, $3,900; Roth, Capital, $14,700; and Lowe,
Capital, $32,200. The liquidation resulted in a loss of $85,800.
Assume that the Turner, Roth, and Lowe partnership is a limited partnership. Turner and Roth are general partners. Lowe is a limited
partner, meaning any remaining deficiency in Lowe's capital account is covered by Turner and Roth. Determine how much, if any, each
partner should contribute to the partnership to cover any remaining capital deficiency.
Note: Do not round intermediate calculations. Losses and deficits amounts to be deducted should be entered with a minus sign.
Capital balances after gains (losses)
Initial capital balances
Allocation of gains (losses)
Capital balances after gains (losses)
Allocation of Lowe's Deficit to Turner and Roth
Allocation of Lowe's deficit to Turner and Roth
Capital balances after deficit allocation
Amount to be repaid to partnership
1/10
Turner
$
$
Turner
3,900
(8,580) 4/10
(4,680)
$ (4,680)
+
Roth
$
14,700
(34,320) 5/10
$ (19,620)
Roth
$ (19,620)
Lowe
$
Total
32,200 $
50,800
(42,900) (85,800)
$ (10,700) $ (35,000)
Lowe
Total
$ (24,300)
$ (24,300)
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