The Big Three – Example #1 After depreciation of $15,000, AB liquidates and distributes the $45,000 proceeds from the sale of its machinery to A and B Partners' capital accounts A: $30,000 - $15,000 = $15,000 B: $30,000 - $0 = $30,000 ***The $45,000 must be allocated in accordance with the partners' capital accounts ($15,000 to A and $30,000 to B)
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