exercice 1

a) NETWEB PARTNERCHIP AT DECEMBER 31, 2019 HAS CASH $50 000, NONCASH ASSETS $250 000, LIABILITES $138 000 AND THE FOLLOWING CAPITAL BALANCES: ERIC $112 000 AND PATRICK $50 000. THE PARTNERSHIP IS LIQUIDATED, AND $275 000 IN CASH IS RECEIVED FOR THE NONCASH ASSETS. ERIC AND PATRICK INCOME AND LOSS RATIOS ARE 60% AND 40%, RESPECTIVELY.

INSTRUCTIONS: PREPARE THE DISTRIBUTION OF CASH TO EACH PARTNER. SHOW ALL SUPPORTING CALCULATIONS.

b) PHILIP, CALVIN, AND AARON ARE PARTNERS WHO SHARE PROFITS AND LOSSES 50%, 30%, AND 20%, RESPECTIVELY. THEIR CAPITAL BALANCES ARE $150 000, $90 000, AND $60 000 RESPECTIVELY. INSTRUCTIONS: 1. ASSUME JAMES JOINS THE PARTNERSHIP BY INVESTING $120 000 FOR A 25% INTEREST. WHAT ARE THE CAPITAL BALANCES OF ALL PARTNERS AFTER THE ADMISSION OF JAMES? SHOW ALL SUPPORTING CALCULATIONS. 2. ASSUME INSTEAD THAT AARON LEAVES THE PARTNERSHIP. AARON IS PAID $180 000. WHAT ARE THE CAPITAL BALANCES OF ALL PARTNERS AFTER THE WITHDRAW OF AARON?