Question 25

The accountant made safe capital distribution on March 1. How much cash did Norris receive from this distribution?

	$50,857
	$42,714
	$0
	$50,284

The partnership of Wingler, Norris Rodgers, and Guthrie was formed several years ago as a architectural firm. Several partnersrecently had personal financdal problem s and deded to terminate operations and liquidate the business. The following balance sheet summarizec its financial information on January 5 at the beginning of this process: Cash Accounts Receivable InventorY Land Building and Equipment inet Total Assets $17,000 80,000 100,000 57,000 193,000 447,000 Liabilities Rodgers Loan Wingler, Capital Norris, Capital Rodgers Capital Gu thrie, Capital Total Liabilities and Capital $79,000 25,000 141,000 100,000 62,000 40.000 47,000 The estimated liquidation expenses were Profit and loss allocation ratio according to the provisions of par tnership agreement: 18,000 Norris Rodgers Guthrie 20% 10% 30% The following transactions occurred during the liquidation: Jan. 14 Collected 70% of the total accounts receivalbe with the rest judged to be uncollectible Feb. 23 Sold the land, building and equipment for Mar. 1 Made safe capital distributions Mar.29 Learned that Guthrie became personally in solvent Apr, 3 Pa liabilitie s Jun. 30 Sold all inventory for 70% 180,000 55,000 ul 1 Made safe capital distributions again Sep, 26 Paid liquidation expenses Nov, 4 Made final cash distrubtions to the partners based on the assumption that all partners except Guthrie are personally solvent. 15,000