As of January 1, 2018, the partnership of Canton, Yulls, and Garr had the following account balances
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Question:
As of January 1, 2018, the partnership of Canton, Yulls, and Garr had the following account balances and percentages for the sharing of profits and losses:
Cash | $ 80,000 |
Noncash assets | 205,000 |
Liabilities | 47,000 |
Canton, Capital (30%) | 138,000 |
Yulls, Capital (40%) | 119,500 |
Garr, Capital (30%) | (19,500) |
The partnership incurred losses in recent years and decided to liquidate. The liquidation expenses were expected to be $10,000.
- How much cash should each partner receive at this time, pursuant to a proposed schedule of liquidation?
- If the noncash assets are sold for $105,000, what would be the maximum amount of cash that Canton could expect to receive?
Related Book For
Survey of Accounting
ISBN: 978-1259631122
5th edition
Authors: Thomas Edmonds, Christopher Edmonds, Philip Olds, Frances McNair, Bor-Yi Tsay
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