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Question:-

1. Partner Amy, Malia, and Rapha are partners sharing profits and losses equally. Below are their business information:

The partners decide to liquidate and their undistributed operating profit prior to liquidation amounted to $72,000. All of the partnership assets and income were exhausted during liquidation. Unpaid liabilities amounted to $84,000. Amy is personally insolvent and the remaining partners are solvent. How much was the total loss on the realization of assets?

360,000

444,000

480,000

516,000

2. Gummy, Jennifer, and Bella are partners who decided to terminate their partnership due to a misunderstanding. The total assets of the partnership is $480,000 including cash of $30,000. The capital balances of the partners were as follows Gummy $150,000; Jennifer $175,000; Bella $67,500. Unpaid liabilities amounted to $87,500. Assets with a book value of $175,000 were sold for $125,000 and the cash was distributed. The profit or loss ratio is 5:3:2. How much must the remaining assets be sold in order for Jennifer to receive $197,500 after liquidation?

3. Bea, Wade, and Freya agree to sell construction tools for a period of one month. Bea agrees to construct a stand on the front of the lawn of Freya. Freya will be paid $2,500 for cleaning up the lawn after the one-month selling period. Bea, Wade, and Freya decide that net income if any will be allocated first by the $2,500 payment to Freya and then by a 40% commission on individual sales. The balance will be distributed 75% to Bea and 25% to Wade. They agree that a cash box will complicate matters and that all purchases and sales transactions will be out-of-pocket and the responsibility of the individual. Sales to Bea, Wade, and Freya are to be at a cost, except that the ending inventory may be purchased at 50% of the cost. All other sales are to be made at 100% mark-up on cost.

The activity of the joint operation is presented below:

a. Bea construct the stand on the front of the lawn at a cost of $10,000;

b. Bea pays $100,000 for various construction tools. Freya pays $5,000 for permits to operate the concession or business;

c. Bea purchases additional construction tools for $150,000, using $50,000 contributed by Wade and $100,000 of personal money;

d. Sales for the period were as follows: Bea, $170,000; Wade, $260,000; and Freya, $60,000;

e. Freya pays $9,000 for office supplies and these are distributed equally between Bea, Wade, and Freya for their personal use at home. Freya agrees to pay $5,000 for the stand.

f. The balance of construction tools inventory was taken by Bea.

How much is the amount to be received (paid) by Bea during cash settlement