27. On December 31, 2020, the partnership of Abe, Bravo, Charlie and Delfin decided to liquidate with the following account balances. Cash-20,000; Noncash asset- 180,000; Liabilities-100,000; Bravo loan-10,000; Charlie Loan- 5,000; Abe(10%)-15,000; Bravo (20%)- 25,000; Charlie (45%)- 15,000; Delfin(25%)- 30,000 . Assuming that Bravo and Charlie are limited partners and Abe, Bravo, Charlie and Delfin are solvent up to P10,000; P15,000; P10,000 and P5,000 respectively; determine the cash settlement given to Abe if the Non cash assets were sold for P100,000 (round to nearest peso).
27. On December 31, 2020, the partnership of Abe, Bravo, Charlie and Delfin decided to liquidate with the following account balances. Cash-20,000; Noncash asset- 180,000; Liabilities-100,000; Bravo loan-10,000; Charlie Loan- 5,000; Abe(10%)-15,000; Bravo (20%)- 25,000; Charlie (45%)- 15,000; Delfin(25%)- 30,000 . Assuming that Bravo and Charlie are limited partners and Abe, Bravo, Charlie and Delfin are solvent up to P10,000; P15,000; P10,000 and P5,000 respectively; determine the cash settlement given to Abe if the Non cash assets were sold for P100,000 (round to nearest peso).
Chapter4: Gross Income: Concepts And Inclusions
Section: Chapter Questions
Problem 12DQ
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27. On December 31, 2020, the partnership of Abe, Bravo, Charlie and Delfin decided to liquidate with the following account balances.
Cash-20,000; Noncash asset- 180,000; Liabilities-100,000; Bravo loan-10,000; Charlie Loan- 5,000; Abe(10%)-15,000; Bravo (20%)- 25,000; Charlie (45%)- 15,000; Delfin(25%)- 30,000 .
Assuming that Bravo and Charlie are limited partners and Abe, Bravo, Charlie and Delfin are solvent up to P10,000; P15,000; P10,000 and P5,000 respectively; determine the cash settlement given to Abe if the Non cash assets were sold for P100,000 (round to nearest peso).
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