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The following balance sheet is for a partnership in which the partners have decided to terminate operations and liquidate assets. The partners estimate liquidation expenses
The following balance sheet is for a partnership in which the partners have decided to terminate operations and liquidate assets. The partners estimate liquidation expenses will be $15,000.
Cash | $ | 140,000 | Liabilities | $ | 70,000 | |
Noncash assets | 280,000 | Arch, capital (40%) | 130,000 | |||
Bibb, capital (20%) | 65,000 | |||||
Dao, capital (40%) | 155,000 | |||||
Total assets | $ | 420,000 | Total liabilities and capital | $ | 420,000 | |
Prepare a proposed schedule of liquidation to carry out a preliminary distribution of partnership assets at the date of termination. (Amounts to be deducted should be entered with a minus sign.)
ARCH, BIBB, AND DAO PARTNERSHIP Proposed Schedule of Liquidation Date of Termination Noncash Arch, Capital Cash Assets Liabilities 40% Bibb, Capital 20% Dao, Capital 40% Beginning balances Pay liabilities Max. liquidation expenses Max. loss - noncash assets Initial safe payments
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