Hanson, James, and Smith, a partnership, is in the process of liquidating. The partners have the following capital account balances; $48,000, $48,000, and ($18,000) respectively. The partners share all profits and losses 16%, 48%, and 36%, respectively. Smith has indicated that the ($18,000) deficit will be covered with a forthcoming contribution. The remaining partners have requested an immediate distribution of $40,000 in cash that is available. How should this cash be distributed? A. Hanson $10,000; James $30,000. B. Hanson $34,000; James $6,000. C. Hanson $22,308; James $17,692. D. Hanson $28,594; James $11,406. E. Hanson $25,000; James $15,000.
Hanson, James, and Smith, a partnership, is in the process of liquidating. The partners have the following capital account balances; $48,000, $48,000, and ($18,000) respectively. The partners share all profits and losses 16%, 48%, and 36%, respectively. Smith has indicated that the ($18,000) deficit will be covered with a forthcoming contribution. The remaining partners have requested an immediate distribution of $40,000 in cash that is available. How should this cash be distributed? A. Hanson $10,000; James $30,000. B. Hanson $34,000; James $6,000. C. Hanson $22,308; James $17,692. D. Hanson $28,594; James $11,406. E. Hanson $25,000; James $15,000.
SWFT Essntl Tax Individ/Bus Entities 2020
23rd Edition
ISBN:9780357391266
Author:Nellen
Publisher:Nellen
Chapter14: Partnerships And Limited Liability Entities
Section: Chapter Questions
Problem 33P
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Hanson, James, and Smith, a
A. Hanson $10,000; James $30,000.
B. Hanson $34,000; James $6,000.
C. Hanson $22,308; James $17,692.
D. Hanson $28,594; James $11,406.
E. Hanson $25,000; James $15,000.
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