Question
Assets Liability and capital Cash 61,000 Land 235,000 Building 225,000 Liabilities 51,000 Adams Captial 156,500 Baker Capital 45,000 Carvil Capital 102,000 Dobbs Capital 166,500 d.
Assets Liability and capital
Cash 61,000
Land 235,000
Building 225,000
Liabilities 51,000
Adams Captial 156,500
Baker Capital 45,000
Carvil Capital 102,000
Dobbs Capital 166,500
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.)
This is the last part of the entire question I figured out the rest but cannot seem to get this one. Thank you for the help
Attention: This is the rest of the problem, I actually only need the answer to d. I cannot seem to get it do right, and am not sure what I am missing
Thank You
The following balance sheet is for a local partnership in which the partners have become very unhappy with each other.
Cash | $ 61,000 | Liabilities | $ 51,000 | |
Land | 235,000 | Adams, capital | 156,500 | |
Building | 225,000 | Baker, capital | 45,000 | |
Carvil, capital | 102,000 | |||
Dobbs, capital | 166,500 | |||
Total assets | $521,000 | Total liabilities and capital | $521,000 | |
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 partnerships 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 $141,000 to give total cash of $202,000. The liabilities are then paid, leaving a cash balance of $151,000. 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.) |
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