A local partnership is liquidating and is currently reporting the following capital balances: Barley, capital (50% share of all profits and losses) $44,000 Carter, capital (30%) 32,000 Desai, capital (20%) (24,000) Desai has indicated that a forthcoming contribution will cover the $24,000 deficit. However, the two remaining partners have asked to receive the $52,000 in cash that is currently available. How much of this money should each of the partners receive? a. Barley, $32,000; Carter, $20,000. b. Barley, $32,500; Carter, $19,500. c. Barley, $22,000; Carter, $30,000. d. Barley, $29,000; Carter, $23,000.
A local partnership is liquidating and is currently reporting the following capital balances: Barley, capital (50% share of all profits and losses) $44,000 Carter, capital (30%) 32,000 Desai, capital (20%) (24,000) Desai has indicated that a forthcoming contribution will cover the $24,000 deficit. However, the two remaining partners have asked to receive the $52,000 in cash that is currently available. How much of this money should each of the partners receive? a. Barley, $32,000; Carter, $20,000. b. Barley, $32,500; Carter, $19,500. c. Barley, $22,000; Carter, $30,000. d. Barley, $29,000; Carter, $23,000.
Chapter11: Partnerships: Distributions, Transfer Of Interests, And Terminations
Section: Chapter Questions
Problem 18CE
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A local partnership is liquidating and is currently reporting the following capital balances:
Barley, capital (50% share of all |
$44,000 |
Carter, capital (30%) | 32,000 |
Desai, capital (20%) | (24,000) |
Desai has indicated that a forthcoming contribution will cover the $24,000 deficit. However, the two remaining partners have asked to receive the $52,000 in cash that is currently available. How much of this money should each of the partners receive?
a. Barley, $32,000; Carter, $20,000.
b. Barley, $32,500; Carter, $19,500.
c. Barley, $22,000; Carter, $30,000.
d. Barley, $29,000; Carter, $23,000.
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