Question
XYZ Partnership begins the liquidation process with the following balance sheet and profit and loss percentages: Cash 280,000 Noncash Assets 300,000 Liabilities 200,000 X Capital
XYZ Partnership begins the liquidation process with the following balance sheet and profit and loss percentages:
Cash 280,000
Noncash Assets 300,000
Liabilities 200,000
X Capital (40%) 100,000
Y Capital (30%) 150,000
Z Capital (30%) 130,000
Liquidation expenses are estimated at $50,000. Assume any deficit in a partners capital balance will not be repaid.
How much is the safe payment that can be made to partner Z (hint: prepare a proposed schedule of liquidation).
| a. | $5,000 | |
| b. | $0 | |
| c. | $25,000 | |
| d. | $15,000 | |
| e. | $10,000 |
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Accounting In A Nutshell Accounting For The Non-specialist
Authors: Walker, Janet
3rd Edition
075068738X, 9780750687386
