Question

Pete, Tom, and Zack have operated a Laundromat for 10 years. The partners, who share profits 4:3:3, respectively, decide to liquidate the partnership. The firm’s balance sheet just before the partners sell the other assets for $30,000 is as follows:


The personal status of each partner just before liquidation is as follows:


The partnership operates in a state that has adopted the Uniform Partnership Act.

Required:
A. Determine the amount of cash each partner will receive in liquidation and how much cash each partner must invest in the firm, given their personal positions.
B. Determine the amounts that the personal creditors will receive from personal assets and any distribution from thepartnership.


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  • CreatedMarch 16, 2015
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