Turner, Roth, and Lowe are partners who share income and loss in a 1:4:5 ratio (in...
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Turner, Roth, and Lowe are partners who share income and loss in a 1:4:5 ratio (in percents: Turner, 10%; Roth, 40%, and Lowe, 50%). The partners decide to liquidate the partnership. Immediately before liquidation, the partnership balance sheet shows total assets, $142,800, total liabilities, $92,000, Turner, Capital, $3,900, Roth, Capital, $14,700, and Lowe, Capital, $32,200 Cash received from selling the assets was sufficient to repay all but $35,000 to the creditors Exercise 12-13 Liquidation of partnership LO P5 4 Required: a. Calculate the loss from selling the assets. b. Allocate the loss from part a to the partners. c. Determine how much each partner should contribute to the partnership to cover any remaining capital deficiency. Turner, Roth, and Lowe are partners who share income and loss in a 1:4:5 ratio (in percents: Turner, 10%; Roth, 40%, and Lowe, 50%). The partners decide to liquidate the partnership. Immediately before liquidation, the partnership balance sheet shows total assets, $142,800, total liabilities, $92,000, Turner, Capital, $3,900, Roth, Capital, $14,700, and Lowe, Capital, $32,200 Cash received from selling the assets was sufficient to repay all but $35,000 to the creditors Exercise 12-13 Liquidation of partnership LO P5 4 Required: a. Calculate the loss from selling the assets. b. Allocate the loss from part a to the partners. c. Determine how much each partner should contribute to the partnership to cover any remaining capital deficiency.
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a Calculation of the loss from selling the assets b A... View the full answer
Related Book For
Fundamental accounting principle
ISBN: 978-0078025587
21st edition
Authors: John J. Wild, Ken W. Shaw, Barbara Chiappetta
Posted Date:
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