A local partnership is to be liquidated. Commissions and other liquidation expenses are expected to total $19,000. The business’s balances prior to the commencement of liquidation is as follows:   Cash . . . . . . . . . . . . . . . . . . . $ 27,000 Liabilities . . . . . . . . . . . . . . . $ 40,000Noncash assets . . . . . . . . . 254,000 Simpson, capital (20%) . . .  18,000Hart, capital (40%) . . . . . .. . 40,000Bobb, capital (20%) . . . . . . . 48,000Reidl, capital (20%) . . . . . . . 135,000 Prepare a predistribution plan for this partnership.

Question

A local partnership is to be liquidated. Commissions and other liquidation expenses are expected to total $19,000. The business’s balances prior to the commencement of liquidation is as follows:

 

Cash . . . . . . . . . . . . . . . . . . . $ 27,000 Liabilities . . . . . . . . . . . . . . . $ 40,000
Noncash assets . . . . . . . . . 254,000 Simpson, capital (20%) . . .  18,000
Hart, capital (40%) . . . . . .. . 40,000
Bobb, capital (20%) . . . . . . . 48,000
Reidl, capital (20%) . . . . . . . 135,000

Prepare a predistribution plan for this partnership.

 

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