Question
The partnership of Hendrick, Mitchum, and Redding has the following account balances: Cash $ 58,000 Liabilities $ 38,000 Noncash assets 157,000 Hendrick, capital 136,000 Mitchum,
The partnership of Hendrick, Mitchum, and Redding has the following account balances:
Cash | $ | 58,000 | Liabilities | $ | 38,000 | |||
Noncash assets | 157,000 | Hendrick, capital | 136,000 | |||||
Mitchum, capital | 92,000 | |||||||
Redding, capital | (51,000 | ) | ||||||
This partnership is being liquidated. Hendrick and Mitchum are each entitled to 30 percent of all profits and losses with the remaining 40 percent going to Redding.
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What is the maximum amount that Redding might have to contribute to this partnership because of the deficit capital balance?
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How should the $20,000 cash that is presently available in excess of liabilities be distributed?
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If the noncash assets are sold for a total of $72,000, what is the minimum amount of cash that Hendrick could receive?
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