12-2 question 5, PLEASE SHOW HOW YOU GOT THE ANSWER! thank you Liquidating Partnerships Prior to liquidating their partnership, Fowler and Montgomery had capital accounts
12-2 question 5, PLEASE SHOW HOW YOU GOT THE ANSWER! thank you
Liquidating Partnerships
Prior to liquidating their partnership, Fowler and Montgomery had capital accounts of $30,000 and $55,000, respectively. Prior to liquidation, the partnership had no cash assets other than what was realized from the sale of assets. These partnership assets were sold for $95,000. The partnership had $3,000 of liabilities. Fowler and Montgomery share income and losses equally.
Determine the amount received by Montgomery as a final distribution from liquidation of the partnership.
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