The GBE partnership became insolvent on January 1, 2021, and the partnership is being liquidated as soon as practicable. In this respect the following information for the partner are as follows: Capital balance of G- P70,000, B-(P60,000) and for E- (P30,000); Personal assets of G-P80,000, B- P30,000 and E-P70,000; Personal Liabilities G-P40,000, B-P40,000 and E-P30,000. Assume that residual profits and losses are shared equally among the three partners. Based on this information, calculate the maximum amount that G can expect to receive from the partnership liquidation.
The GBE partnership became insolvent on January 1, 2021, and the partnership is being liquidated as soon as practicable. In this respect the following information for the partner are as follows: Capital balance of G- P70,000, B-(P60,000) and for E- (P30,000); Personal assets of G-P80,000, B- P30,000 and E-P70,000; Personal Liabilities G-P40,000, B-P40,000 and E-P30,000. Assume that residual profits and losses are shared equally among the three partners. Based on this information, calculate the maximum amount that G can expect to receive from the partnership liquidation.
SWFT Essntl Tax Individ/Bus Entities 2020
23rd Edition
ISBN:9780357391266
Author:Nellen
Publisher:Nellen
Chapter6: Losses And Loss Limitations
Section: Chapter Questions
Problem 21P
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Transcribed Image Text:The GBE partnership became insolvent on January 1, 2021, and the partnership is being liquidated
as soon as practicable. In this respect the following information for the partner are as follows:
Capital balance of G- P70,000, B-(P60,000) and for E- (P30,000); Personal assets of G-P80,000, B-
P30,000 and E-P70,000; Personal Liabilities G-P40,000, B-P40,000 and E-P30,000. Assume that
residual profits and losses are shared equally among the three partners. Based on this information,
calculate the maximum amount that G can expect to receive from the partnership liquidation.
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