Amounts to be received by a partner during liquidation. A condensed balance sheet for a partnership to be liquidated is as follows:

The profit and loss percentages for Partners A, B, and C are 50%, 30%, and 20%, respectively. For each of the following independent scenarios, determine how much of the available cash, with the exception of $10,000, would be distributed to Partner B.

1. Assume that the receivables and the inventory were liquidated for $140,000 cash.

2. Assume that all noncash assets other than equipment were sold for $53,000 cash.

3. Assume that noncash assets with a book value of $300,000 were sold for $250,000 cash and that a distribution to Partner A was made in order to pay off the loan payable to them.

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Assets Liabilities and Capital $ 92,000 70,000 Cash Receivables (net). Inventory . Equipment (net) Other assets . $ 20,000 88,000 70,000 145,000 Accounts payable Loan payable to Partner A.. A, capital.... B, capital . C, capital.. 46,000 90,000 55,000 80,000 Total assets $378,000 Total liabilities $378,000 Assets Liabilities and Capital $ 92,000 70,000 Cash Receivables (net). Inventory . Equipment (net) Other assets . $ 20,000 88,000 70,000 145,000 Accounts payable Loan payable to Partner A.. A, capital.... B, capital . C, capital.. 46,000 90,000 55,000 80,000 Total assets $378,000 Total liabilities $378,000

Answer rating: 100% (QA)

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