Required Information Tom, Dick, and Harry are partners in an equipment leasing business that has not been able to generate the type of revenue expected by the partners. They share profits and losses in a ratio of 5:3:2. They have decided to liquidate the business and have sold all the assets except for one piece of heavy machinery. All partnership liabilities have been settled and all the partners are personally insolvent. The machinery has a book value of $65,000, and the partners have capital account balances as follows: Tom, Capital Dick, Capital $40,000 10,000 Barry, Capital 15,000 Each of the following is an independent case. Refer to the information given above. What amount of cash will each partner receive as a liquidating distribution if the machinery is sold for $1,100? Tom Dick Harry A) $1,100 $ 0 $ 0 B) $8,050 $9,170 $2,220 C) $1,500 $ 0 $ 400 D) $1,500 $ 0 $ 0 Multiple Choice Option A O Option B Option C Option D Required Information Partners Dennis and Lilly have decided to liquidate their business. The following information is available: Cash Inventory $100,000 Accounts payable 200,000 Dennis, Capital Lilly, Capital $300,000 $100,000 120,000 80,000 $300,000 Dennis and Lilly share profits and losses in a 3:2 ratio. During the first month of liquidation, half the Inventory is sold for $60,000, and $60,000 of the accounts payable is paid. During the second month, the rest of the inventory is sold for $45,000, and the remaining accounts payable are paid. Cash is distributed at the end of each month, and the liquidation is completed at the end of the second month. Refer to the Information provided above. Using a safe payments schedule, how much cash will be distributed to Dennis at the end of the second month? Multiple Choice $18,000 $27,000 $36,000 $60,000 Required information Partners David and Goliath have decided to liquidate their business. The following information is available: Cash Inventory Accounts payable David, Capital Goliath, Capital $100,000 200,000 $300,000 $ 80,000 140,000 80,000 $300,000 David and Goliath share profits and losses in a 3:1 ratio, respectively. During the first month of liquidation, half the inventory is sold for $70,000, and $50,000 of the accounts payable are paid. During the second month, the rest of the inventory is sold for $55,000, and the remaining accounts payable are paid. Cash is distributed at the end of each month, and the liquidation is completed at the end of the second month. Refer to the information provided above. Using a safe payment schedule, how much cash will be distributed to Goliath at the end of the first month? Multiple Choice $7,500 $25,000 $47,500 $72,500 Required Information On January 2, 20X8, Polaris Company acquired a 100% interest in the capital stock of Ski Company for $3,100,000. Any excess cost over book value is attributable to a patent with a 10-year remaining life. At the date of acquisition, Ski's balance sheet contained the following information: Foreign Currency Units (FCU) Canh Receivables (net), Inventories (IPO) 40,000 150,000 500,000 Plant and Equipment (net) 1,500,000 Total Accounts Payable Capital Stock Retained Earnings Total 2,190,000 200,000 600,000 1,390,000 2,190,000 Ski's income statement for 20X8 is as follows: Revenues from Sales Cost of Goods Sold Foreign Currency Units (FCU) 1,010,000 (590,000) 420,000 Gross Margin Operating Expenses (exclusive of depreciation) Depreciation Expense Income Taxes Net Income The balance sheet of Ski at December 31, 20X8, is as follows: Foreign Currency Units (FCU) 180,000 Cash Receivables (net) 210,000 Inventories (FIFO) 520,000 Plant and Equipment (net) 1,300,000 Total 2,210,000 Accounts Payable 180,000 Capital Stock 600,000 Retained Earnings 1,430,000 Total 2,210,000 (120,000) (200,000) (40,000) 60,000 Ski declared and paid a dividend of 20,000 FCU on October 1, 20X8. Spot rates at various dates for 20X8 follow: January 2 1 ECU 1,50 October 1 1 CU 5 1.60 December 31 1 YOU 1.70 Weighted Average 1 TCU 155 Accounts Payable Capital Stock Retained Earnings Total 180,000 600,000 1,430,000 2,210,000 Ski declared and paid a dividend of 20,000 FCU on October 1, 20X8. Spot rates at various dates for 20X8 follow: January 2 October 1 December 31 Weighted Average 1 FCU 1 FCU $ 1.50 $1.60 1 FCU $ 1.70 1 FCU $ 1.55 Assume Ski's revenues, purchases, operating expenses, depreciation expense, and income taxes were incurred evenly throughout 20X8. Refer to the above Information. Assuming the U.S. dollar is the functional currency, what is the amount of patent amortization for 20X8 that results from Polaris's acquisition of Ski's stock on January 2, 20X8? Multiple Choice $11,884 $11.770 $12,550 $11,500