The partnership of Anderson, Berry, Hammond, and Winwood is being liquidated. It currently holds cash of...

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The partnership of Anderson, Berry, Hammond, and Winwood is being liquidated. It currently holds cash of $21,500 but no other

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Answer 1

Answer #1

a)

Total deficit (28000+32000)	60,000
B share(20/60*60000)	20,000
B current balance	19000
B extra pay	1000

b1)

Total deficit of Winwood	-32000
H shares (30/80*32000	12000
h current balance	-28000 deficit
h extra pay	40,000

b2)

Creditor (37000-2500)	15,500
A share (32000*20/80)	8000
A net capital (25500-8000)	17500
B share (32000*30/80)	8000
B net capital (19000-8000)	11000

c)

Total deficit (H)	28,000
A share (30/80*28000)	10500
A current balance	25500
H extra pay	13000

So, A will receive $13000 if H is insolvent

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Answer 2

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