Liquidation schedule-one negative capital account with no capital contribution The ABC partnership reports the following condensed balance sheet: Cash Noncash assets Total assets $800,000 Partner A, capital 450,000 Partner B, capital 450,000 Partner C, capital 80,000 $1,780,000 Total liabilities and partner capital $1,780,000 $580,000 Liabilities 1,200,000 The partners wish to liquidate the partnership. The noncash assets are sold for $900,000 with the loss distributed to the partners in the ratio of 30%/30 % / 40% to partner A, B, and C, respectively. The liabilities are paid in full. Assume that any partners with a negative balance in their respective Capital Accounts are insolvent and, therefore, do not make any capital contribution to the partnership (i.e., remaining partners must absorb the negative Capital Account according to their profit sharing formula). Prepare a schedule detailing the liquidation of the assets, repayment of the liabilities, and distribution of the remaining cash to the partners.

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Liquidation schedule-one negative capital account with no capital contribution The ABC partnership reports the following condensed balance sheet Cash $580.000 Libes Nonrash assets 1.200.000 Partner A, capital $800.000 450.000 Partner B, capital 450,000 Partner C. capital $0,000 Total assets $1.780.000 Total abilities and partner capital $1.780.000 The partners wish to liquidate the partnership. The noncash assets are sold for $900,000 with the loss distributed to the partners in the ratio of 30/30/40% to partner A, B, and C, respectively. The liabilities are paid in full Assume that any partners with a negative balance in their respective Capital Accounts are insolvent and, therefore, do not make any capital contribution to the partnership (ie, remaining partners must absorb the negative Capital Account according to their profit sharing formulas. Prepare a schedule detailing the liquidation of the assets, repayment of the liabilities, and distribution of the remaining cash to the partners Note: Use a negative sign with answers that reduce account balances or to indicate a negative account balance. Otherwise, do not use negative signs with your answers. Liquidation Schedule of ASC Partnership Cash Noncash Assets Liabilities Capital account, prior to liquidation S Sale of noncash assets Allocation of defor Payment of creditors Diaribution to partners Pest-quadation balances Check -Capital Accounts- Liquidation schedule-one negative capital account with no capital contribution The ABC partnership reports the following condensed balance sheet Cash $580.000 Libes Nonrash assets 1.200.000 Partner A, capital $800.000 450.000 Partner B, capital 450,000 Partner C. capital $0,000 Total assets $1.780.000 Total abilities and partner capital $1.780.000 The partners wish to liquidate the partnership. The noncash assets are sold for $900,000 with the loss distributed to the partners in the ratio of 30/30/40% to partner A, B, and C, respectively. The liabilities are paid in full Assume that any partners with a negative balance in their respective Capital Accounts are insolvent and, therefore, do not make any capital contribution to the partnership (ie, remaining partners must absorb the negative Capital Account according to their profit sharing formulas. Prepare a schedule detailing the liquidation of the assets, repayment of the liabilities, and distribution of the remaining cash to the partners Note: Use a negative sign with answers that reduce account balances or to indicate a negative account balance. Otherwise, do not use negative signs with your answers. Liquidation Schedule of ASC Partnership Cash Noncash Assets Liabilities Capital account, prior to liquidation S Sale of noncash assets Allocation of defor Payment of creditors Diaribution to partners Pest-quadation balances Check -Capital Accounts-

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To prepare a liquidation schedule for the ABC partnership we need to follow these steps 1 Sell nonca... View the full answer