PROBLEM: The Mahoney Partnership is being liquidated. The beginning balance in each of the four partners...

 

Transcribed Image Text:

PROBLEM: The Mahoney Partnership is being liquidated. The beginning balance in each of the four partners accounts are as follows: Partner A-$30,000 (junior partner) [Owns 1/11 of the company] Partner B-$60,000 (junior partner) [Owns 2/11 of the company] Partner C-$120,000 [Owns 4/11 of the company] Partner D-$120,000 [Owns 4/11 of the company] Cash before any sales of assets was $230,000 Unpaid liabilities before any sales of assets were $10,000 The partnership owned a Patent that was sold for $660,000. The book value of the Patent was $110,000 ANSWER the following questions by selecting one answer only and circling your answer from the choices below: 1) What was the gain or loss on the sale of non-cash assets? 2) What was the total amount of cash distribution to Partner A in this liquidation? What was the share of the gain or loss on the sale of the Patent that was allocated to Partner C? 3) 2a0aGF== F) $80,000 $100,000 $110,000 $120,000 $200,000 $320,000 $550,000 Gain $550,000 Loss $890,000 None of the Above PROBLEM: The Mahoney Partnership is being liquidated. The beginning balance in each of the four partners accounts are as follows: Partner A-$30,000 (junior partner) [Owns 1/11 of the company] Partner B-$60,000 (junior partner) [Owns 2/11 of the company] Partner C-$120,000 [Owns 4/11 of the company] Partner D-$120,000 [Owns 4/11 of the company] Cash before any sales of assets was $230,000 Unpaid liabilities before any sales of assets were $10,000 The partnership owned a Patent that was sold for $660,000. The book value of the Patent was $110,000 ANSWER the following questions by selecting one answer only and circling your answer from the choices below: 1) What was the gain or loss on the sale of non-cash assets? 2) What was the total amount of cash distribution to Partner A in this liquidation? What was the share of the gain or loss on the sale of the Patent that was allocated to Partner C? 3) 2a0aGF== F) $80,000 $100,000 $110,000 $120,000 $200,000 $320,000 $550,000 Gain $550,000 Loss $890,000 None of the Above

Answer rating: 100% (QA)

2 3 Gain or loss on sale of non cash assets Sale price of patent 1 660000 Book Value of Patent ... View the full answer