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13-05-2023
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Prior to liquidating their partnership, Wakefield and Barns had capital accounts of $105,000 and $55,000, respectively. The partnership assets were sold for $40,000. The partnership had no liabilities. Wakefield and Barns share income and losses equally.
a. Determine the amount of Barns' deficiency.
b. Determine the amount distributed to Wakefield, assuming that Barns is unable to satisfy the deficiency.

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