Liquidation of limited partnership
Assume that the Turner, Roth, and Lowe partnership of Exercise 19-10 is a limited partnership. Turner and Roth are general partners and Lowe is a limited partner. How much of the remaining $28,000 liability should be paid by each partner?
Reference Exercise 19-10:
Liquidation of partnership
Turner, Roth, and Lowe are partners who share income and loss in a 1:4:5 ratio. After lengthy disagreements among the partners and several unprofitable periods, the partners decided to liquidate the partnership. Immediately before liquidation, the partnership balance sheet shows: total assets, $126,000; total liabilities, $78,000; Turner, Capital, $2,500; Roth, Capital, $14,000; and Lowe, Capital, $31,500. The cash proceeds from selling the assets were sufficient to repay all but $28,000 to the creditors. (a) Calculate the loss from selling the assets. (b) Allocate the loss to the partners. (c) Determine how much of the remaining liability should be paid by each partner.
We need at least 10 more requests to produce the solution.
0 / 10 have requested this problem solution
The more requests, the faster the answer.