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The ABC Partnership is to be liquidated and you have been hired to prepare a schedule of cash payments for the partnership. Partners Alexa,
The ABC Partnership is to be liquidated and you have been hired to prepare a schedule of cash payments for the partnership. Partners Alexa, Bitsy and Coco share income and losses in the ratio of 4:3:3, respectively. Using the data below, how much is the bonuses or deficiency when the non- cash assets are sold for $70,000? If it is a bonus, type the fill-in-the-blank as follows: $10,000. If it is a deficiency, type the fill-in-the-blank as follows: ($10,000). Cash $25,000, Noncash assets $150,000, Liabilities $50,000, Alexa, Capital, $25,000, Bitsy, Capital $35,000, and Coco Capital $65,000. Assume the following: 1. Noncash assets were sold for $70,000. 2. Liabilities were paid in full. 3. (If any partner has a capital deficiency, assume that the partner is able to pay the capital deficiency.) 4. The remaining cash is distributed to the partners.
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