Answered: Kevin, capital (40%).... Michael,…

Business

Accounting

Kevin, capital (40%).... Michael, capital (30%). Brendan, capital (10%). Jonathan, capital (20%) $59,000 39,000 34,000

SWFT Comprehensive Vol 2020

43rd Edition

ISBN:9780357391723

Author:Maloney

Publisher:Maloney

Chapter18: Corporations: Organization And Capital Structure

Section: Chapter Questions

Problem 2BCRQ

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Question

A partnership is currently holding $400,000 in assets and $234,000 in liabilities. The partnership is to be liquidated, and $20,000 is the best estimation of the expenses that will be incurred during this process. The four partners share profits and losses as shown. Capital balances at the start of the liquidation follow:

The partners realize that Brendan will be the first partner to start receiving cash. How much cash will Brendan receive before any of the other partners collect any cash?

$12,250
$12,250
$17,000
$19,500

Kevin, capital (40%)....
Michael, capital (30%).
Brendan, capital (10%).
Jonathan, capital (20%)
$59,000
39,000
34,000

Definition Definition Amount earned or lost on the sale of one or more items is referred to as the profit or loss on that item

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