The GBE partnership becarne 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 Balances Personal Assets Personal Liabilities G P70,000 P80,000 P40,000 B (60,000) 30,000 40,000 E (30,000) 70,000 30,000 Total P(20,000) 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 becarne 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 Balances Personal Assets Personal Liabilities G P70,000 P80,000 P40,000 B (60,000) 30,000 40,000 E (30,000) 70,000 30,000 Total P(20,000) 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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The GBE partnership becarne 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 Balances | Personal Assets | Personal Liabilities | |
| G | P70,000 | P80,000 | P40,000 |
| B | (60,000) | 30,000 | 40,000 |
| E | (30,000) | 70,000 | 30,000 |
| Total | P(20,000) |
Assume that residual
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