Question
As of January 1, 2021, the partnership of Carlin, Yearly, and Granite had the following account balances and percentages for the sharing of profits and
As of January 1, 2021, the partnership of Carlin, Yearly, and Granite had the following account balances and percentages for the sharing of profits and losses:
| Cash | $ | 160,000 | |
| Noncash assets | 410,000 | ||
| Liabilities | 94,000 | ||
| Carlin, capital (30%) | 276,000 | ||
| Yearly, capital (40%) | 239,500 | ||
| Granite, capital (30%) | (39,500 | ) | |
The partnership incurred losses in recent years and decided to liquidate. The liquidation expenses were expected to be $20,000.
What would be the maximum amount Granite might have to contribute to the partnership to eliminate a deficit balance in his account?
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Cost Accounting A Managerial Emphasis
Authors: Charles T Horngren
6th Edition
0131795082, 978-0131795082
