Question
The partnership of Anderson, Berry, Hammond, and Winwood is being liquidated. It currently holds cash of $21,300 but no other assets. Liabilities amount to $30,600.
The partnership of Anderson, Berry, Hammond, and Winwood is being liquidated. It currently holds cash of $21,300 but no other assets. Liabilities amount to $30,600. The capital balances are
| Anderson (30% of profits and losses) | $ | 26,700 | ||
| Berry (30%) | 28,000 | |||
| Hammond (20%) | (23,000 | ) | (deficit) | |
| Winwood (20%) | (41,000 | ) | (deficit) | |
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a. If both Hammond and Winwood are personally insolvent, how much money must Berry contribute to this partnership?
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b-1. If only Winwood is personally insolvent, how much money must Hammond contribute?
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b-2. If only Winwood is personally insolvent, how will Hammond's contribution (funds) be disbursed?
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c. If only Hammond is personally insolvent, how much money should Anderson receive from the liquidation?
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Understanding Business And Finance An Active Learning Approach Promoting Act
Authors: Jill Hussey
1st Edition
9781858050799
