Question
Problem: Installment Liquidation On November 10, 2016, Ed, Fin, and Jim, partners had capital account balances of $20,000, $25,000 and $9,000 respectively, and share profits
Problem: Installment Liquidation
On November 10, 2016, Ed, Fin, and Jim, partners had capital account balances of $20,000, $25,000 and $9,000 respectively, and share profits or losses in a 4:2:1 ratio.
Required:
1. Prepare the cash priority program assuming that liabilities totaled $20,000 on Nov. 10, 2016
2. If Ed received $4000, how much cash was paid to all partners?
3. If Ed received $13000, how much did Jim get?
4. if Fin received only $11000 as a result of the liquidation, what was the loss on realization of partnership assets (assuming that no partner invested any additional assets in the partnership)?
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