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PROBLEM 2; OBAMA, BIDEN AND PUTIN FORMED A PARTNERSHIP WITH EACH PARTNER HAVING A 1/3 SHARE. AFTER MANY SUCCESSFUL YEARS THEY HAVE DECIDED TO TERMINATE
PROBLEM 2;
OBAMA, BIDEN AND PUTIN FORMED A PARTNERSHIP WITH EACH PARTNER HAVING A 1/3 SHARE. AFTER MANY SUCCESSFUL YEARS THEY HAVE DECIDED TO TERMINATE THE PARTNERSHIP. THE FOLLOWING BALANCE SHEET EXISTS
ASSETS: EQUITY:
CASH $50,000 OBAMA CAPITAL $8,000
A/R $60,000 BIDEN CAPITAL $2,000
INVENTORY $20,000 PUTIN CAPITAL $130,000
LAND $10,000
TOTAL $140,000 $140,000
DUE TO PUTINS EXCEPTIONAL NEGOTIATING SKILLS, THERE WILL BE NO COSTS TO LIQUIDATE THE PARTNERSHIP
- What, if any, safe payments can each of the partners take?
- No partner has taken any safe payments, and the inventory is sold for $5,000, now what safe payments can each of the partners take?
- No partner has taken any safe payments, and the inventory is sold for $5,000 and the land is sold for $31,000, now what safe payments can each of the partners take?
- No partner has taken any safe payments, and the inventory is sold for $5000, the land is sold for $31,000 and the receivables are sold for $24,000. Any partner with a negative capital account is unable to pay into the partnership, how much does each partner collect at liquidation?
- No partner has taken any safe payments, and the inventory is sold for $5000, the land is sold for $31,000 and the receivables are sold for $24,000. Any partner with a negative capital account is able to cover their shortage. How much does each partner collect or pay at liquidation?
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