Use the following information for the next FOUR items

ABC partnership is being liquidated. Partners share profits and losses equally.

Beginning balances were as illustrated in the table below. Assume all non-cash assets were sold for $64,000. Partnership liabilities were settled. Partners with deficit capital balances contribute to settling their deficits to the extent of their personal assets and personal liabilities (equal priority).

Partner A: personal assets $50,000, personal liabilities $20,000.

Partner B: personal assets $30,000, personal liabilities $16,000.

Partner C: personal assets $20,000, personal liabilities 10,000

	Cash	Non-Cash Assets	Liabilities	A's Capital	B's Capital	C's Capital
Beg. Bal.	$0	$100,000	$52,000	$37,000	$(12,000)	$23,000

(Hint: you need to complete the liquidation schedule before answering the following questions)

1. What is Partner A's Capital balance after selling the assets and settling the liabilities
2. How much personal assets can Partner B contribute toward settling her deficit?
3. How much does Partner C absorb from the remaining deficit of Partner B (if any)?(Enter a positive number or 0 for none)
4. How much cash does Partner A receive from the partnership at the end of the liquidation (if any)? (Enter a positive number or 0 for none)

5, Parent Co. owns 80% of Subsidiary Co. At the beginning of 2022, Subsidiary Co.'s beginning inventory included $10,000 merchandise purchased from Parent Co. in the prior year. Parent Co.'s gross profit on sales is 25%. What elimination entry should be prepared at the end of 2022 in the consolidation worksheet?

Inventory

COGS

RE-Parent

RE-Subsidiary

6. Silver Moon Company owns 70 percent of the common stock of Bright Star Company.At the beginning of 2018, Bright Star issued $100,000 of 8%, 10-year bonds at face value. At the beginning of 2021, Silver Moon purchased 80 percent of these bonds for $87,000. What is the interest adjustment that will be made in Bright Star's income distribution schedule at the end of 2021? (Enter a positive number for additions (i.e., credits) to net income or a negative number for deductions (i.e., debits) from net income).

7. At the end of 2022, Adam Co. had a fair value of $2,700,000. On that date, assets had a book value of $3,000,000 (including $200,000 goodwill) and a fair value of $2,900,000 (excluding goodwill). Liabilities had a book and a fair value of $1,100,000. How much goodwill impairment loss should the company recognize at the end of 2022 (if any)? (Enter a positive number for the impairment loss, or enter 0 for none).

8. Assume that ABC partnership is being liquidated using an installment liquidation approach. Partners' capital balances were $200,000 for A, $170,000 for B, and $60,000 for C. Further, the three partners share profits and losses 3:2:3 for A, B, and C respectively. Which of the three partners is most likely to receive a cash distribution first, as determined by the schedule of safe payments?

1. Partner B
2. Partner C
3. Partner A
4. All partners should receive a cash distribution at the same time.