As of March 31, 2016, the partners’ personal net assets (deficit) were $220,000, $12,500, and $100,000 for Klaproth, Stone, and Jackson, respectively. If a partner develops a deficit capital balance,...

As of March 31, 2016, the partners’ personal net assets (deficit) were $220,000, $12,500, and $100,000 for Klaproth, Stone, and Jackson, respectively. If a partner develops a deficit capital balance, they would likely contribute an amount equal to their net personal assets.

Certain partners feel that things will improve over the next two years and have made an alternative proposal to Klaproth. Under this proposal, Klaproth would continue his involvement in the company and continue to share profits and losses as before. On March 31, 2018, the partnership would buy Klaproth’s interest for 110% of his capital balance as of December 31, 2017, after adjusting receivables and inventory to their market values as of year-end 2017. The partnership’s profit-sharing agreement is as follows:

 In anticipation of a meeting with Klaproth, prepare a schedule that will help him with respect to which course of action might be most appropriate.