S and T are equal partners in the ST partnership and share profits and losses accordingly. At the end of the current year, the partnership's capital accounts reflect the following numbers due to a special allocation of depreciation:
Capital S = ($20,000)
Capital T = $60,000
All of the assets are sold for $40,000. How much will T receive in liquidation if the special allocation is to be respected?
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- Correction: T will receive 60,000
- Apr 04, 2018 at 9:45am