Question
The Miami-Divers partnership had the following balance sheet just before its final liquidation: Cash $ 50,000 Liabilities $ 70,000 Inventory 100,000 Phyllis, Capital (50% of
The Miami-Divers partnership had the following balance sheet just before its final liquidation:
Cash | $ 50,000 |
| Liabilities | $ 70,000 |
Inventory | 100,000 |
| Phyllis, Capital (50% of profits and losses) | 150,000 |
Other Assets | 250,000 |
| Sara, Capital (20%) | 90,000 |
|
|
| Robin, Capital (30%) | 90,000 |
Total | $ 400,000 |
| Total | $ 400,000 |
The inventory was sold for $60,000 and liquidation expenses are estimated to be $15,000. What amount of cash is available for safe payments?
No safe payment can be made until all liabilities are fully paid | ||||||||||||||||||||||||||||||||||||||||||
$25,000 | ||||||||||||||||||||||||||||||||||||||||||
$275,000 | ||||||||||||||||||||||||||||||||||||||||||
330,000 | ||||||||||||||||||||||||||||||||||||||||||
None of the answers is correct
The Big Cypress partnership had the following balance sheet just before its final liquidation:
The inventory was sold for $60,000, the Other Assets were sold for $105,000 and liquidation expenses are estimated to be $15,000. Which partner(s) would have had to contribute assets to the partnership to cover a deficit in her capital account?
|
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