Question
The Henry, Isaac, and Jacobs partnership was about to enter liquidation with the following account balances: Estimated expenses of liquidation were $10,000. Henry, Isaac, and
The Henry, Isaac, and Jacobs partnership was about to enter liquidation with the following account balances:
Estimated expenses of liquidation
were $10,000. Henry, Isaac, and Jacobs shared profits and losses in a ratio of 2:4:4.
Before liquidating any assets, the partners determined the amount of safe cash and distributed it. The noncash assets were then sold for $120,000, and the liquidation expenses of $10,000 were paid. How much of the $120,000 would be distributed to Henry?
cash 90000 liabilities 60000 Noncash assets 300000 Henry capital 80000 Isaac capital 110000 Jacobs capital 140000 Total 390000 Total 390000
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Get StartedRecommended Textbook for
Intermediate Accounting Reporting and Analysis
Authors: James M. Wahlen, Jefferson P. Jones, Donald Pagach
2nd edition
9781305727557, 1285453824, 9781337116619, 130572755X, 978-1285453828
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