Question
The partnership of Anderson, Berry, Hammond, and Winwood is being liquidated. It currently holds cash of $22,600 but no other assets. Liabilities amount to $33,300.
The partnership of Anderson, Berry, Hammond, and Winwood is being liquidated. It currently holds cash of $22,600 but no other assets. Liabilities amount to $33,300. The capital balances are
| Anderson (30% of profits and losses) | $ | 20,300 | ||
| Berry (30%) | 13,000 | |||
| Hammond (20%) | (18,000 | ) | (deficit) | |
| Winwood (20%) | (26,000 | ) | (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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Monitoring And Auditing Practices For Effective Compliance
Authors: John E. Steiner
2nd Edition
0977843017, 978-0977843015
