Question
Liquidating PartnershipsDeficiency Prior to liquidating their partnership, Underwood and Morrison had capital accounts of $17,000 and $71,000, respectively. The partnership assets were sold for $36,000.
Liquidating PartnershipsDeficiency
Prior to liquidating their partnership, Underwood and Morrison had capital accounts of $17,000 and $71,000, respectively. The partnership assets were sold for $36,000. The partnership had no liabilities. Underwood and Morrison share income and losses equally.
Required:
a. Determine the amount of Underwood's deficiency. $
b. Determine the amount distributed to Morrison, assuming Underwood is unable to satisfy the deficiency.
$
Liquidating Partnerships
Prior to liquidating their partnership, Perkins and Montgomery had capital accounts of $34,000 and $52,000, respectively. Prior to liquidation, the partnership had no cash assets other than what was realized from the sale of assets. These partnership assets were sold for $102,000. The partnership had $3,000 of liabilities. Perkins and Montgomery share income and losses equally.
Determine the amount received by Perkins as a final distribution from liquidation of the partnership. $
Sharpe has a capital balance of $48,000 after adjusting assets to fair market value. Marler contributes $27,000 to receive a 30% interest in a new partnership with Sharpe.
Determine the amount and recipient of the partner bonus.
Amount of bonus | $ |
Recipient of bonus |
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