Prior to liquidating their partnership, Underwood and Haines had capital accounts of $27,000 and $107,000, respectively. The partnership assets were sold for $54,000. The partnership had no liabilities. Underwood and Haines share income and losses equally.
a. Determine the amount of Underwood's deficiency.
b. Determine the amount distributed to Haines, assuming Underwood is unable to satisfy the deficiency.