The Braun Company at December 31 has the following account balances.

Instructions

Calculate how much cash each partner will receive on the liquidation of the partnership under each situation assuming any deficiencies are paid by the partners:

(a) Cash of $110,000 is received for the noncash assets. Ho’s and Li’s income ratios are 60% and 40%, respectively.

(b) Cash of $60,000 is received for the noncash assets. Ho’s and Li’s income ratios are 60% and 40%, respectively.

Transcribed Image Text:

THE BRAUN COMPANY Noncash Item Cash Assets Liabilities +Ho, Capital Li, Capital Balances before liquidation $15,000 $110,000 $60,000 $40,000 $25,000