On June 30, 2006, the balance sheet for Coll, Maduro & Prieto LLP (together with the income-sharing ratio) was as follows: Coll decided to retire from the partnership. By mutual agreement, the partnership assets were to be adjusted to their current fair value of $216,000 on June 30, 2006. It was agreed that the partnership would pay Coll $61,200 cash for Coll's partnership interest, including Coll's loan that was to be repaid in full. No goodwill was to be recognized. After Coll's retirement, the balance of Maduro's capital account is:

Question

On June 30, 2006, the balance sheet for Coll, Maduro & Prieto LLP (together with the income-sharing ratio) was as follows:  Coll decided to retire from the partnership. By mutual agreement, the partnership assets were to be adjusted to their current fair value of $216,000 on June 30, 2006. It was agreed that the partnership would pay Coll $61,200 cash for Coll's partnership interest, including Coll's loan that was to be repaid in full. No goodwill was to be recognized. After Coll's retirement, the balance of Maduro's capital account is:

Quizplus · Accepted Answer

Rationale: ($39,000 + $7,200 - $750 = $45,450)

On June 30, 2006, the Balance Sheet for Coll, Maduro