Do It! The partners of LR Company have decided to liquidate their business. Noncash assets were sold for $125,000. The income or losses ratios of the partners Cisneros, Gunselman, and Forren are 5:3:2, respectively. Cash: 15,000 Building: 40,000 Land: 50,000 Accounts Payable: 66,000 Cisneros Capital: 20,000 Gunselman Capital: 32,000 Forren Capital: (13,000) Determine how much Gunselman must get from absorbing Forren's capital deficiency.

Do It! The partners of LR Company have decided to liquidate their business. Noncash assets were sold for $125,000. The income or losses ratios of the partners Cisneros, Gunselman, and Forren are 5:3:2, respectively. Cash: 15,000 Building: 40,000 Land: 50,000 Accounts Payable: 66,000 Cisneros Capital: 20,000 Gunselman Capital: 32,000 Forren Capital: (13,000) Determine how much Gunselman must get from absorbing Forren's capital deficiency.

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter14: Choice Of Business Entity—operations And Distributions

Section: Chapter Questions

Problem 47P

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