Home / Questions / The following balance sheet is for a local partnership in which the partners have become ...
The following balance sheet is for a local partnership in which the partners have become very
unhappy with each other.
Cash $ 50,000 Liabilities $ 40,000
Land 180,000 Adams, capital 114,000
Building 170,000 Baker, capital 42,000
Carvil, capital 80,000
Dobbs, capital 124,000
Total assets $ 400,000 Total liabilities and capital $ 400,000
To avoid more conflict, the partners have decided to cease operations and sell all assets. Using this
information, answer the following questions. Each question should be viewed as an independent
situation related to the partnership’s liquidation.
a. The $10,000 cash that exceeds the partnership liabilities is to be disbursed immediately. If
profits and losses are allocated to Adams, Baker, Carvil, and Dobbs on a 2:3:3:2 basis,
respectively, how will the $10,000 be divided?
b. The $10,000 cash that exceeds the partnership liabilities is to be disbursed immediately. If
profits and losses are allocated on a 2:2:3:3 basis, respectively, how will the $10,000 be
c. The building is immediately sold for $95,000 to give total cash of $145,000. The liabilities are
then paid, leaving a cash balance of $105,000. This cash is to be distributed to the partners.
How much of this money will each partner receive if profits and losses are allocated to Adams,
Baker, Carvil, and Dobbs on a 1:3:3:3 basis, respectively? (Do not round intermediate
d. Assume that profits and losses are allocated to Adams, Baker, Carvil, and Dobbs on a 1:3:4:2
basis, respectively. How much money must the firm receive from selling the land and building to
ensure that Carvil receives a portion? (Do not round intermediate calculations.)
Jul 14 2020 View more View Less
Marsh and Root Construction have won the contract to widen and resurface a section of road. The site manager has identified the following tasks together with the tasks th...Jul 23 2020
According to Keynesian economics, economic downturns are caused by ________________.Jul 01 2021
Using consumer and producer surplus how can subsidy deadweight loss be depicted?May 05 2021
Consider a 30-year, $155,000 mortgage with a rate of 6.05 percent. Ten years into the mortgage, rates have fallen to 5 percent. What would be the monthly saving to a home...Nov 23 2019
Advertising and promotion are methods of manipulating product or service supply in aggregate planning. Select one: a. False b. TrueMay 02 2021
Greta, an elderly investor, has a degree of risk aversion of A = 4 when applied to return on wealth over a 3-year horizon. She is pondering two portfolios, the S&P 500 an...May 22 2018
Consider projects A and B with the following cash flows:C0 C1C2 C3A --$43 + $27 + $27 + $27B -- $68 + 37 + 37 + 37a-1 what is the NPV of each project if the discount rate...Aug 05 2021
How would you prepare 78.0 g of an aqueous solution that is 5.00% potassium iodide, KI, by mass?Jun 29 2021
The key feature of an oligopolistic market is that:a. each firm produces a different product from other firmsb. a single firm chooses a point on the market demand curve ...May 11 2021
Sorry to have to do this. Solve for each of the seven problems below. Remember you don't have to enter the data every time, your calculator saves the prior information....Apr 15 2021