Question
The Drysdale, Koufax, and Marichal partnership has the following balance sheet immediately prior to liquidation: Cash $ 44,000 Liabilities $ 44,500 Noncash assets 244,000 Drysdale,
The Drysdale, Koufax, and Marichal partnership has the following balance sheet immediately prior to liquidation:
| Cash | $ | 44,000 | Liabilities | $ | 44,500 |
| Noncash assets | 244,000 | Drysdale, loan | 27,500 | ||
| Drysdale, capital (50%) | 82,000 | ||||
| Koufax, capital (30%) | 72,000 | ||||
| Marichal, capital (20%) | 62,000 | ||||
a. Liquidation expenses are estimated to be $23,000. Prepare a predistribution schedule to guide the distribution of cash.
b. Assume that assets costing $82,000 are sold for $64,000. How is the available cash to be divided?
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Aviation Tax IRS Audit Techniques Guide
Authors: Internal Revenue Service
1st Edition
1304131696, 978-1304131690
