Question
The Keaton, Lewis, and Meador LLP had the following balance sheet just before entering liquidation: Cash $10,000 Liabilities $130,000 Noncash assets 300,000 Keaton, capital 60,000
The Keaton, Lewis, and Meador LLP had the following balance sheet just before entering liquidation:
| Cash | $10,000 | Liabilities | $130,000 | |
| Noncash assets | 300,000 | Keaton, capital | 60,000 | |
| Lewis, capital | 40,000 | |||
| Meador, capital | 80,000 | |||
| Total assets | $310,000 | Total liabilities and capital | $310,000 |
Keaton, Lewis, and Meador share profits and losses in a ratio of 2:4:4. Noncash assets were sold for $280,000. Liquidation expenses were $10,000.
What amount of cash (safe payment) would the partners have received from the liquidation of partnership assets?
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Intermediate Accounting
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield
18th Edition
1119790972, 9781119790976
