Question
on december 31, 2016, partners uno, tres, and singko have capital balances of 252,000, 368,000, and 305,000, respectively. the partnership has 275,000 liabilities, including a
on december 31, 2016, partners uno, tres, and singko have capital balances of 252,000, 368,000, and 305,000, respectively. the partnership has 275,000 liabilities, including a loan from tres amounting to 20,000, and cash of 175,000.
on may 31, 2017, the partnership decided to liquidate. its net income from january to may 31 amounted to 348,000 its profits/ loss distribution agreement calls for annual salaries of 134,400, 158,400, and 115,200 for uno, tres, and singko, respectively. any remainder will be distributed as follows: uno and tres - .25, and singko - .50. the partnership's cash as of this date amounted to 250,000 and its total liabilities amounted to 307,000, excluding the loan from tres.
during june, non cash assets with a book value of 400,000 were sold for a certain amount. the partnership paid 47,000 of its liabilities to outside creditors. liquidation expenses amounting to 44,000 were paid and cash will be withheld for the payment of its reamining liabilities to outsiders.
during july, non cash assets were sold for 432,000 resulting in a loss of 18,000. remaining liabilities to outsiders were paid and 425,000 were distributed to the partners. 5,000 were paid for the liquidation expenses.
- how much were the noncash assets sold in june for in order for tres to receive the amount priority to her and an additional 7,500?
- what is the capital balance of tres after the distribution of cash on june?
- how much cash was distributed to uno in july?
- what is singko's share in the maximum possible loss after the july sale of noncash assets?
- how much was withheld after the distribution of cash in july?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started