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Adams, Peters, and Blake share profits and losses for their APB Partnership in a ratio of 2:3:5. When they decide to liquidate, the balance sheet

Adams, Peters, and Blake share profits and losses for their APB Partnership in a ratio of 2:3:5. When they decide to liquidate, the balance sheet is as follows:

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Liquidation expenses are expected to be negligible. No interest accrues on loans with partners after termination of the business. Required: Prepare a cash distribution plan for the APB Partnership. Please follow the practical guidelines when completing this worksheet

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Assets Cash Adams, Loan Other Assets $ 42,000 10,400 204,000 Liabilities and Capital Liabilities Adams, Capital Peters, Capital Blake, Capital Total Liabilities & Equities $ 49,000 57,200 78,000 72,200 $256,400 Total Assets $256,400 APB PARTNERSHIP Cash Distribution Plan Loss Absorption Potential Adams Peters Blake Profit and loss percentages Capital Accounts Adams Peters - 20% 30% $ 57,200 $ 78,000 10,400 $ 46,800 $ 78,000 $ 0 Blake 50 % $ 72,200 Preliquidation capital balances Loan to Adams Total $ 72,200 234,000 260,000| 144,400 Loss absorption potential Decrease highest LAP to next highest: $ 234,000 $ 260,000 144.400 $ 46,800 $ 78.000 $ 78,000 $72,200 Decrease LAPs to next highest: $ 234,000 $ 260,000 144,400 $ 46,800 $ 78,000 $72,200 Adams Blake Peters

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