Roberto Orcajada and Ryan Morales are partners who share profits and losses equally. The credit balances of their capital accounts before liquidation are 700,000 and 900,000, respectively. They decided to liquidate their partnership. They sold all the noncash assets and paid all the partnership's liabilities leaving a balance of 1,100,000 in cash. 1. How much cash is distributed to Orcajada? 2. What is the amount of loss or gain in realization?
Roberto Orcajada and Ryan Morales are partners who share profits and losses equally. The credit balances of their capital accounts before liquidation are 700,000 and 900,000, respectively. They decided to liquidate their partnership. They sold all the noncash assets and paid all the partnership's liabilities leaving a balance of 1,100,000 in cash. 1. How much cash is distributed to Orcajada? 2. What is the amount of loss or gain in realization?
Chapter21: Partnerships
Section: Chapter Questions
Problem 57P
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Roberto Orcajada and Ryan Morales are partners who share
1. How much cash is distributed to Orcajada?
2. What is the amount of loss or gain in realization?
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