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Big, Mighty, and Ducks shared profits and losses for their BMD Partnership in a ratio of 3:5:2. When they decided to liquidate, the balance sheet
Big, Mighty, and Ducks shared profits and losses for their BMD Partnership in a ratio of 3:5:2. When they decided to liquidate, the balance sheet was as follows: Assets Plant assets (net) $390,000 Total Assets $390,000 Liabilities and Capital Accounts payable $ 180,000 60,000 Big, Capital Mighty, Capital Ducks, Capital 70,000 80,000 Total liabilities and Equity $390,000 Big, Mighty, and Ducks agreed to distribute available cash back to partners during the liquidation process. For Big to begin receiving some cash from the installment liquidation, the amount of cash received from selling noncash assets must be at least above: (Hint: Prepare a cash distribution plan.) A $180,000 B. $250,000 C. $210,000 D. $220,000
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