The VWX Partnership is undergoing an installment liquidation. Partners Victor, Whitney and Xavier share income in a
Question:
The VWX Partnership is undergoing an installment liquidation. Partners Victor, Whitney and Xavier share income in a 3:5:2 ratio. The partnership balance sheet is as follows:
Assets
Cash - 7,000
AR - 10,000
Loan Rcvable (Victor) - 13,000
Inventory - 25,000
Buildings and equipment, net - 545,000
TOTAL ASSETS - 600,000
Liabilities
AP - 20,000
Loan Payable (Whitney) - 50,000
TOTAL LIABILITIES - 70,000
Capital
Victor - 100,000
Whitney - 250,000
Xavier - 180,000
TOTAL CAPITAL - 530,000
Your are preparing a cash distribution plan for the partnership.
If $249,000 is available to distribute TO THE PARTNERS, how is it distributed?
A- $249,000 to Xavier
B- $135,000 to Whitney and $114,000 to Xavier
C- $40,000 to Victor, $160,000 to Whitney, and $49,000 to Xavier
D- $125,000 to Whitney and $124,000 to Xavier
Financial Accounting
ISBN: 978-0133427530
10th edition
Authors: Walter Harrison, Charles Horngren, William Thomas