Question

What are the Required for A,B & C?

mework Problems Saved Help Save & Ch O Required information Use the following information for the Exercises below. (The following information applies to the questions displayed below.) Turner, Roth, and Lowe are partners who share income and loss in a 2:3.5 ratio (in percents: Turner, 20%; Roth, 30%; and Lowe, 50%). The partners decide to liquidate the partnership. Immediately before liquidation, the partnership balance sheet shows total assets, $154,800; total liabilities, $102,000; Turner, Capital, $4,900; Roth, Capital, $15,200; and Lowe, Capital, $32,700. Cash received from seling the assets was sufficient to repay all but $40,000 to the creditors. Exercise 12-13 Liquidation of partnership LO P5 Required: a. Calculate the loss from selling the assets. b. Allocate the loss from part a to the partners. c. Determine how much each partner should contribute to the partnership to cover any remaining capital deficiency Complete this question by entering your answers in the tabs below. < Prev 7 of 10 Next >

Answer 1

Req a.)		Amount $
	Liabilities before liquidation	102,000
	Proceeds from sale of assets(paid to creditor)	62,000	(102,000 - 40,000 )
	Remaining liabilities	40,000
	Proceeds from sale of assets	62,000
	Book Value of assets sold	154,800
	Loss from selling the assets	92,800	(154,800 - 62,000 )

Req.B			Turner		Roth		Lowe	Total
	Initial capital balances		4,900		15,200		32,700	52,800
	Allocation of gain (losses)	2/10	-18,560	3/10	-27,840	5/10	-46,400	-92,800
	Capital balances after gain (losses)		-13,660		-12,640		-13,700	-40,000
Req.C			Turner		Roth		Lowe	Total
	Amount to be contributed to the partnership		13,660		12,640		13,700	40,000

Answer 2

 Turner, Roth, and Lowe are partners who share income and loss in a 2:3:5 ratio (in percents: Turner, 20%; Roth, 30%; and Lowe, 50%). The partners decide to liquidate the partnership. Immediately before liquidation, the partnership balance sheet shows total assets, $138,000; total liabilities, $88,000; Turner, Capital, $3,500; Roth, Capital, $14,500; and Lowe, Capital, $32,000. The liquidation resulted in a loss of $83,000.