Problem: Installment Liquidation On November 10, 2016, Ed, Fin, and Jim, partners had capital account balances of
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Question:
Problem: Installment Liquidation
On November 10, 2016, Ed, Fin, and Jim, partners had capital account balances of $20,000, $25,000 and $9,000 respectively, and share profits or losses in a 4:2:1 ratio.
Required:
1. Prepare the cash priority program assuming that liabilities totaled $20,000 on Nov. 10, 2016
2. If Ed received $4000, how much cash was paid to all partners?
3. If Ed received $13000, how much did Jim get?
4. if Fin received only $11000 as a result of the liquidation, what was the loss on realization of partnership assets (assuming that no partner invested any additional assets in the partnership)?
Related Book For
Smith and Roberson Business Law
ISBN: 978-0538473637
15th Edition
Authors: Richard A. Mann, Barry S. Roberts
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