Liquidating Partnerships
Prior to liquidating their partnership, Todd and Dunn had capital accounts of $66,000 and $101,000, respectively. Prior to liquidation, the partnership had no cash assets other than what was realized from the sale of assets. These partnership assets were sold for $149,000. The partnership had $8,000 of liabilities. Todd and Dunn share income and losses equally.
Determine the amount received by Todd as a final distribution
from liquidation of the partnership.
$
Prior to liquidating their partnership, Pepper and Reynell had capital accounts of $8,000 and $32,000, respectively. The partnership assets were sold for $16,000. The partnership had no liabilities. Pepper and Reynell share income and losses equally.
Required:
a. Determine the amount of Pepper's
deficiency.
$
b. Determine the amount distributed to Reynell,
assuming Pepper is unable to satisfy the deficiency.
$
1 | ||
Total Capital | 167000 | =66000+101000 |
Book value of assets | 175000 | =167000+8000 |
Loss on sale of assets | 26000 | =175000-149000 |
Todd Capital | 66000 | |
Less: Share of loss | -13000 | =26000*50% |
Amount received by Todd | 53000 | |
2 | ||
Loss on sale of assets | 24000 | =8000+32000-16000 |
a | ||
Pepper, capital | 8000 | |
Less: Share of loss | -12000 | =24000*50% |
Pepper's deficiency | 4000 | |
b | ||
Reynell Capital | 32000 | |
Less: Share of loss | -12000 | |
Less: Pepper's deficiency | -4000 | |
Amount distributed to Reynell | 16000 |
Liquidating Partnerships Prior to liquidating their partnership, Todd and Dunn had capital accounts of $66,000 and...
Liquidating Partnerships Prior to liquidating their partnership, Todd and Dunn had capital accounts of $62,000 and $119,000, respectively. Prior to liquidation, the partnership had no cash assets other than what was realized from the sale of assets. These partnership assets were sold for $216,000. The partnership had $7,000 of liabilities. Todd and Dunn share income and losses equally.
Prior to liquidating their partnership, Todd and Dunn had capital accounts of $42,000 and $66,000, respectively. Prior to liquidation, the partnership had no cash assets other than what was realized from the sale of assets. These partnership assets were sold for $121,000. The partnership had $4,000 of liabilities. Todd and Dunn share income and losses equally. Determine the amount received by Todd as a final distribution from liquidation of the partnership. $
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Liquidating Partnerships-Deficiency Prior to liquidating their partnership, Pepper and Russo had capital accounts of $21,000 and $83,000, respectively. The partnership assets were sold for $38,000. The partnership had no liabilities. Pepper and Russo share income and losses equally. Required: a. Determine the amount of Pepper's deficiency. b. Determine the amount distributed to Russo, assuming Pepper is unable to satisfy the deficiency.
Liquidating Partnerships-Deficiency Prior to liquidating their partnership, Pepper and Haines had capital accounts of $17,000 and $63,000, respectively. The partnership assets were sold for $30,000. The partnership had no liabilities. Pepper and Haines share income and losses equally. Required: a. Determine the amount of Pepper's deficiency. b. Determine the amount distributed to Haines, assuming Pepper is unable to satisfy the deficiency.
Liquidating Partnerships Prior to liquidating their partnership, Todd and Brooks had capital accounts of $56,000 and $91,000, respectively. Prior to liquidation, the partnership had no cash assets other than what was realized from the sale of assets. These partnership assets were sold for $165,000. The partnership had $6,000 of liabilities. Todd and Brooks share income and losses equally. Determine the amount received by Todd as a final distribution from liquidation of the partnership.
Liquidating Partnerships Prior to liquidating their partnership, Ellis and Dunn had capital accounts of $59,000 and $100,000, respectively. Prior to liquidation, the partnership had no cash assets other than what was realized from the sale of assets. These partnership assets were sold for $140,000. The partnership had $6,000 of liabilities. Ellis and Dunn share income and losses equally. Determine the amount received by Ellis as a final distribution from liquidation of the partnership. $
Liquidating Partnerships Prior to liquidating their partnership, Perkins and Dunn had capital accounts of $68,000 and $117,000, respectively. Prior to liquidation, the partnership had no cash assets other than what was realized from the sale of assets. These partnership assets were sold for $206,000. The partnership had $6,000 of liabilities. Perkins and Dunn share income and losses equally. Determine the amount received by Perkins as a final distribution from liquidation of the partnership.
Liquidating Partnerships Prior to liquidating their partnership, Ellis and Dunn had capital accounts of $59,000 and $100,000, respectively. Prior to liquidation, the partnership had no cash assets other than what was realized from the sale of assets. These partnership assets were sold for $140,000. The partnership had $6,000 of liabilities. Ellis and Dunn share income and losses equally. Determine the amount received by Ellis as a final distribution from liquidation of the partnership. $
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