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Use the following information for the Exercises below. [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, $140,400; total liabilities, $90,000; Turner, Capital, $3,700; Roth, Capital, $14,600; and Lowe, Capital, $32,100. Cash received from selling the assets was sufficient to repay all but $34,000 to the creditors.

a. Calculate the loss from selling the assets.

Calculate the loss from selling the assets. ( I filled in these answers not sure if they are correct)

	Liabilities before liquidation $90,000 Proceeds from sale of assets (paid to creditors) 56,000 Remaining liabilities $34,000 Proceeds from sale of assets $56,000 Book value of assets sold 140,400 Loss on sale of assets $(84,400)

b. Allocate the loss from part a to the partners.

• Required B
• Required C

Allocate the loss from part a to the partners. (Losses and deficits should be indicated with a minus sign.) ( I filled in these answers not sure they are correct)

	Turner Roth Lowe Total Initial capital balances $3,700 $14,600 $32,100 $50,400 Allocation of gains (losses) 1/10 (8,440) 4/10 (33,760) 5/10 (42,200) (84,400) Capital balances after gains (losses) $(4,740) $(8,040) $(23,900) $(34,000)

c. Determine how much each partner should contribute to the partnership to cover any remaining capital deficiency. remaining capital deficiency.

• Required C

Determine how much each partner should contribute to the partnership to cover any remaining capital deficiency.

	Turner Roth Lowe Total Amount to be contributed to the partnership: $0

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