(Solution) - Prior to liquidating their partnership Bonilla and Perez had capital -(2025 Original AI-Free Solution)

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Academic Level: Undergrad. (yrs 3-4)

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Prior to liquidating their partnership, Bonilla and Perez had capital accounts of $185,000 and $245,000, respectively. The partnership assets were sold for $30,000. The partnership had no liabilities. Bonilla and Perez share income and losses equally.
a. Determine the amount of Bonilla's deficiency.
b. Determine the amount distributed to Perez, assuming Bonilla is unable to satisfy the deficiency?