As of January 1, 2021, the partnership of Carlin, Yearly, and Granite had the following account balances and percentages for the sharing of profits and losses: The partnership incurred losses in recent years and decided to liquidate. The liquidation expenses were expected to be $20,000.What would be the maximum amount Granite might have to contribute to the partnership to eliminate a deficit balance in his account?

Question

As of January 1, 2021, the partnership of Carlin, Yearly, and Granite had the following account balances and percentages for the sharing of profits and losses:   The partnership incurred losses in recent years and decided to liquidate. The liquidation expenses were expected to be $20,000.What would be the maximum amount Granite might have to contribute to the partnership to eliminate a deficit balance in his account?

chinna samba · Accepted Answer

Final Answer :   The maximum amount that Granite might have to contribute to eliminate a deficit would be $168,000, assuming that the noncash assets cannot be sold and become a total loss to the partnership.

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