Question: Select the correct answer for each of the following questions

Select the correct answer for each of the following questions.
1. On January 1, 20X7, the partners of Casey, Dithers, and Edwards, who share profits and losses in the ratio of 5:3:2, decided to liquidate their partnership. On this date, its condensed balance sheet was as follows:

On January 15, 20X7, the first cash sale of other assets with a carrying amount of $150,000 realized $120,000. Safe installment payments to the partners were made on the same date. How much cash should be distributed to each partner?

2. In a partnership liquidation, the final cash distribution to the partners should be made in accordance with the
a. Partners' profit and loss-sharing ratio.
b. Balances of the partners' capital accounts.
c. Ratio of the capital contributions by the partners.
d. Ratio of capital contributions less withdrawals by the partners.
The balance sheet for the Art, Blythe, and Cooper Partnership is as follows. Figures shown parenthetically reflect agreed profit and loss-sharing percentages.

3. If the firm, as shown on the balance sheet, is dissolved and liquidated by selling assets in installments and if the first sale of noncash assets having a book value of $90,000 realizes $50,000 and all cash available after settlement with creditors is distributed, the respective partners would receive (to the nearest dollar)

4. If the facts are as in question 3 except that $3,000 cash is to be withheld, the respective partners would then receive (to the nearest dollar)

5. If each partner properly received some cash in the distribution after the second sale, if the cash to be distributed amounts to $12,000 from the third sale, and if unsold assets with an $8,000 book value remain, ignoring questions 3 and 4, the respective partners would receive

6. The following condensed balance sheet is for the partnership of Arnie, Bart, and Kurt, who share profits and losses in the ratio of 4:3:3, respectively:

The partners agreed to dissolve the partnership after selling the other assets for $200,000. On dissolution of the partnership, Arnie should receive
a. $0.
b. $40,000.
c. $60,000.
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  • CreatedMay 23, 2014
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