Question

Liquidating Partnerships-Capital Deficiency Nettles, King, and Tanaka are partners sharing income 3:2:1. After the firm's loss from liquidation is distributed, the capital account balances were: Nettles, $54,000 Dr; King, $200,000 C and Tanaka, $141,000 If Nettles is personally bankrupt and unable to pay any of the $54,000, what will be the amount of cash received by Kong and Tanaka upon liquidation? If an amount is zero, enter in 0. Use the minus sign to indicate any deficiencies Amount of Cash Received Nettles King Capital balances after realization Tanaka Distribution of partner deficiency Capital balances after deficiency distributions

Answer 1

LIQUIDATING CAPITAL DEPICIENCY PARTNERCHIPS Tauaka Netle Copitat Balances aftes 'realisalion 141o00 doopo0 asos Diskidction 5y0o0 36000 CON 2) 123,000 64000 Copela Balaues oter dastbution y Nteg o 36000 54000 X 4 5ye00 wN2

Go ld, Perter aud Sins AteteweutPantesp idatu for Pesuod 1-94 July CAPITALCAPITAL CAPITAL NoN CASH LIABILITES t CASH t SIMS PORTER GOLD AESET (46) () C) $ 2.5800 $ 57,900 4-43800 Balance Befar G1200 Realisatiou 4 y0800 - to7t00 Sales Qaaset 85500 divisiol loss DCWNID Balanes ter Realisation -$ 72 00 3600 lo800 -442800 4 30000 4 50700 IM6100 22200 Pay medt g bil e $43800 +43800 Balauces iter 4223200 $20,000 4 50,700 l021900 - 22,200 -4 20,000 -50,700 Casl stubuted $102,900 iuas Ralaures lo ekiug Nates CuN): Los ou sale at Divisiou Partuers in3:2: 21,600 WNL aunary Gald 0800 21600 X Pastey 3200 21660 2 gius 3600 wN 2 Cash is istuibutel to Partuers in Capite balauce Pratuo 30000 50,7 o0 22,200