Question
The partnership of Larry, Moe, and Curly shares profits and losses 60%, 30%, and 10%, respectively. On January 1, 2017, the partners voted to dissolve
The partnership of Larry, Moe, and Curly shares profits and losses 60%, 30%, and 10%, respectively. On January 1, 2017, the partners voted to dissolve the partnership, at which time the assets, liabilities, and capital balances were as follows:
Assets |
| Liabilities and Capital |
|
Cash | $ 400,000 | Accounts Payable | $ 580,000 |
Other Assets | 1,200,000 | Larry, Capital | 440,000 |
|
| Moe, Capital | 380,000 |
|
| Curly, Capital | 200,000 |
Total assets | $1,600,000 | Total liabilities | $1,600,000 |
All of the partners are personally insolvent.
Assume that all noncash assets are sold for $840,000 and all available cash is distributed in final liquidation of the partnership. Cash should be distributed to the partners as follows:
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