The partnership of Joe, Al, and Mike shares profits and losses 60%, 30%, and 10%, respectively....

 

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The partnership of Joe, Al, and Mike shares profits and losses 60%, 30%, and 10%, respectively. On January 1, 2011, the partners voted to dissolve the partnership, at which time the assets, liabilities, and capital balances were as follows: Liabilities and Capital Accounts Payable Joe, Capital Al, Capital Mike, Capital Total liabilities Assets Cash $ 400,000 1,200,000 $ 580,000 440,000 380,000 200,000 $1.600,000 Other Assets Total assets $1.600,000 All of the partners are personally insolvent. Assume that all noncash assets are sold for $840,000 and all available cash is distributed in fin liquidation of the partnership. Cash should be distributed to the partners in what amounts? The partnership of Joe, Al, and Mike shares profits and losses 60%, 30%, and 10%, respectively. On January 1, 2011, the partners voted to dissolve the partnership, at which time the assets, liabilities, and capital balances were as follows: Liabilities and Capital Accounts Payable Joe, Capital Al, Capital Mike, Capital Total liabilities Assets Cash $ 400,000 1,200,000 $ 580,000 440,000 380,000 200,000 $1.600,000 Other Assets Total assets $1.600,000 All of the partners are personally insolvent. Assume that all noncash assets are sold for $840,000 and all available cash is distributed in fin liquidation of the partnership. Cash should be distributed to the partners in what amounts?

Answer rating: 100% (QA)

Note 1 Book value of other assets 1200000 Less sale of other assets 840000 Los... View the full answer