Brewster, Conway, and Ogden are partners who share income and loss in a 1:5:4 ratio. After lengthy disagreements
among the partners and several unprofitable periods, the partners decide to liquidate the partnership.
Immediately before liquidation, the partnership balance sheet shows total assets, $117,000; total
liabilities, $87,750; Brewster, Capital, $1,600; Conway, Capital, $11,600; and Ogden, Capital, $16,050.
The cash proceeds from selling the assets were sufficient to repay all but $20,500 to the creditors. (a)
Calculate the loss from selling the assets. (b) Allocate the loss to the partners. (c) Determine how much
of the remaining liability should be paid by each partner.
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