Prior to liquidating their partnership, Ellis and Ericson had capital accounts of $17,000 and $29,000, respectively....

 

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Prior to liquidating their partnership, Ellis and Ericson had capital accounts of $17,000 and $29,000, respectively. Prior to liquidation, the partnership had no cash assets other than what was realized from the sale of assets. These partnership assets were sold for $55,000. The partnership had $2,000 of liabilities. Ellis and Ericson share income and losses equally. Determine the amount received by Ellis as a final distribution from liquidation of the partnership. Prior to liquidating their partnership, Ellis and Ericson had capital accounts of $17,000 and $29,000, respectively. Prior to liquidation, the partnership had no cash assets other than what was realized from the sale of assets. These partnership assets were sold for $55,000. The partnership had $2,000 of liabilities. Ellis and Ericson share income and losses equally. Determine the amount received by Ellis as a final distribution from liquidation of the partnership.

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Cash available for distribution after payment of liabilities 55000 2000 53000 Gain o... View the full answer