Wilson, Harold, and Meeks are partners, sharing profits and losses in the ratio of 40, 30, and 30 percent, respectively Their partnership agreement provides that if one of them withdraws from the partnership, the assets and liabilities are to be revalued, the gain or loss allocated to the partners,...

The increase in net assets as a result of the r ...

Wilson, Harold, and Meeks are partners, sharing profits and losses in the ratio of 40, 30, and

Question:

Wilson, Harold, and Meeks are partners, sharing profits and losses in the ratio of 40, 30, and 30 percent, respectively. Their agreement provides that if one of them withdraws from the the assets and liabilities are to be revalued, the gain or loss allocated to the partners, and the retiring partner paid the balance of his account. Meeks withdraws from the on December 31, 2016. The capital account balances before recording revaluation are Wilson, $125,000; Harold, $135,000; and Meeks, $120,000. The effect of the revaluation is to increase Merchandise Inventory by $26,000 and the Building account balance by $15,000. How much cash will be paid to Meeks?
Partnership
A legal form of business operation between two or more individuals who share management and profits. A Written agreement between two or more individuals who join as partners to form and carry on a for-profit business. Among other things, it states...