Home / Questions / The following balance sheet is for a local partnership in which the partners have become v...
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
divided?
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
calculations.)
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.)
Apr 04 2020 Read more Less More
.Zeta sells equipment on the cost recovery method of revenue recognition. The sales price is $500,000 and a down payment of $200,000 will be be received in 2017 and the b...
Mar 19 20201. At a speed of 90 fpm, feed of 0.030 ipr, and depth at 0.625, calculate the input parameters for a lathe if the diameter to be machined (bored) is 6 in. Find the rpm (N...
May 23 2020Sixx AM Manufacturing has a target debt—equity ratio of 0.61. Its cost of equity is 20 percent, and its cost of debt is 9 percent. If the tax rate is 32 percent, what is ...
Sep 01 2020Hello everyone!Any help with this case study assignment would be greatly appreciated, I have attached the case file and I need to find the following:Executive Summary In...
Nov 07 2017Suppose First Main Street Bank, Second republic bank, and third fidelity bank all have excess reserves. The required ratio is 20%. The Federal Reserve buys a government b...
May 29 2020Cal Overhaut operates an ExxonMobil gas station franchise in Fitzhugh, MD. The price of gasoline is volatile and varies greatly from day to day. The price per gallon vari...
Apr 06 2020An increasing number of households end up owing nothing in major federal taxes, but the situation may not be sustainable over the long run.
May 26 2020When a 5-kΩ resistor is connected across a two-terminal source, a current of 15 mA is delivered to the load. When a second 5-kΩ resistor is connected in parallel with the...
Jul 28 2020Explain the meaning of design for manufacture (DFM) and give some examples. >
Jul 24 2020If a firm inventory level of $10,000 represents 30 day sales, what is the annual cost of goods sold? What is the inventory turnover ratio? 110. In each of the following c...
Jan 09 2020Welcome to MyCourseHelp Services, World's leading Academic solutions provider with Millions of Happy Students.