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The balance sheet for the D, X, and O partnership follows: Cash $ 61,440 Liabilities $ 41,000 Noncash assets 104,000 D, capital 73,600 X, capital
The balance sheet for the D, X, and O partnership follows:
Cash | $ | 61,440 | Liabilities | $ | 41,000 | |
Noncash assets | 104,000 | D, capital | 73,600 | |||
X, capital | 42,000 | |||||
O, capital | 8,840 | |||||
Total assets | $ | 165,440 | Total liabilities and capital | $ | 165,440 | |
D, X, and O share profits and losses in the ratio of 5:4:1, respectively. The partners have agreed to terminate the business and estimate that $12,400 in liquidation expenses will be incurred.
- What is the amount of cash that safely can be paid to partners prior to liquidation of noncash assets?
- Calculate the amount of safe payment that can be made to each partner prior to liquidation of noncash assets.
A. Cash that safely can be paid =
B. Safe payments for D = , O = , X =
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