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, $126,000; total liabilities, $78,000; Turner, Capital, $2,500; Roth, Capital, $14,000; and Lowe, Capital, $31,500. Cash received from selling the assets was sufficient to repay all but $28,000 to the creditors. Required:
a. Calculate the loss from selling the assets.
b. Allocate the loss from part a to the partners.
c. Determine how much each partner should contribute to the partnership to cover any remaining capital deficiency.

Complete this question by entering your answers in the tabs below.

Required A
Required B
Required C
Calculate the loss from selling the assets.

Liabilities before liquidation
Proceeds from sale of assets (paid to creditors)
Remaining liabilities$0
Proceeds from sale of assets
Book value of assets sold
Loss on sale of assets
Allocate the loss from part a to the partners. (Losses and deficits should be indicated with a minus sign.)

Turner Roth LoweTotal
Initial capital balances $2,500 $14,000 $31,500$48,000
Allocation of gains (losses) 0
Capital balances after gains (losses)
Determine how much each partner should contribute to the partnership to cover any remaining capital deficiency.

Turner Roth LoweTotal
Amount to be contributed to the partnership: $0