The Everglades partnership is being liquidated due to the insolvency of one of its partner, Sharon. The current capital balances are as follows: Sharon 140,000 Rachel 60,000 Shana 100,000 Anna 120,000 The partners share profits and losses 3:5:1:1, respectively. The partnership currently hold assets reported at $570,000 and liabilities of $150,000. Sharons creditors have filed a $90,000 claim against the partnerships assets. If the assets can be sold for $370,000, what is the minimum amount that Sharons creditors would collect?

-0-

$33,000

$80,000

$56,000

None of the answers is correct

On January 1, Abba Company acquired 60% of Ben Company for $700,000 in cash. On the date of the acquisition, the book value of net assets of Ben company were as follows: Cash $100,000 Inventory 200,000 Building, Net 500,000 Liabilities (150,000) Net Assets $650,000 During the year, Ben paid total dividends of $80,000, and Abba paid total dividends of $120,000. How Abbas acquisition of Ben should be reported on the Consolidated Statement of Cash-Flow?

As $600,000 cash outflow from financing activities

As $700,000 cash outflow from investing activities

As $600,000 cash outflow from investing activities

As $600,000 cash inflow from investing activities

The acquisition is an intra-companies transaction and should not be reported on the Consolidated Statement of Cash-Flow.

If a partnership became insolvent and was unable to pay its liabilities currently due. What recourse was available to the partnership's creditors?

The creditors must try obtaining a payment from the partner with the largest capital account balance.

The creditors must present claims to the partners as individuals based on their ownership ratio.

The creditors cannot seek remuneration from the partners as individuals.

The creditors must present their claims to the partners in the order of the partners' capital account balances.

The creditors may seek remuneration from any partner they choose.

On January 1, Abba Company acquired 60% of Ben Company for $700,000 in cash. On the date of the acquisition, the book value of net assets of Ben company were as follows: Cash $100,000 Inventory 200,000 Building, Net 500,000 Liabilities (150,000) Net Assets $650,000 During the year, Ben paid total dividends of $80,000, and Abba paid total dividends of $120,000. How these dividends should be reported on the Consolidated Statement of Cash-Flow?

		As $200,000 cash outflow from financing activities
		As $120,000 cash outflow from financing activities
		As $184,000 cash outflow from financing activities
		As $152,000 cash outflow from financing activities
		These dividends are intra-companies dividends and should not be reported on the Consolidated Statement of Cash-Flow.