The Keaton, Lewis, and Meador partnership had the following balance sheet just before entering liquidation: Cash $ 100,000 Noncash assets 210,000 Total $ 310,000 Liabilities 40,000 Keaton, capital 90,000 lewis, capital 60,000 Meador, capital 120,000 total 310,000 Keaton, Lewis, and Meador share profits and losses in a ratio of 2:4:4. Assuming noncash assets were sold for $60,000 and liquidation expenses in the amount of $10,000 were incurred, how much will each partner receive in the liquidation? Keaton Lewis Meador A) $40,000 $26,667 $ 53,333 B) $24,000 $48,000 $ 48,000 C) $56,667 $ 0 $ 53,333 D) $ 0 $ 0 $120,000 E) $36,000 $12,000 $ 72,000
The Keaton, Lewis, and Meador partnership had the following balance sheet just before entering liquidation: Cash $ 100,000 Noncash assets 210,000 Total $ 310,000 Liabilities 40,000 Keaton, capital 90,000 lewis, capital 60,000 Meador, capital 120,000 total 310,000 Keaton, Lewis, and Meador share profits and losses in a ratio of 2:4:4. Assuming noncash assets were sold for $60,000 and liquidation expenses in the amount of $10,000 were incurred, how much will each partner receive in the liquidation? Keaton Lewis Meador A) $40,000 $26,667 $ 53,333 B) $24,000 $48,000 $ 48,000 C) $56,667 $ 0 $ 53,333 D) $ 0 $ 0 $120,000 E) $36,000 $12,000 $ 72,000
Chapter13: Comparative Forms Of Doing Business
Section: Chapter Questions
Problem 29CE
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The Keaton, Lewis, and Meador partnership had the following balance sheet just before entering liquidation:
Cash $ 100,000
Noncash assets 210,000
Total $ 310,000
Liabilities 40,000
Keaton, capital 90,000
lewis, capital 60,000
Meador, capital 120,000
total 310,000
Keaton, Lewis, and Meador share
2:4:4.
Assuming noncash assets were sold for $60,000 and liquidation expenses in
the amount of $10,000 were incurred, how much will each partner receive in the liquidation?
Keaton Lewis Meador
A) $40,000 $26,667 $ 53,333
B) $24,000 $48,000 $ 48,000
C) $56,667 $ 0 $ 53,333
D) $ 0 $ 0 $120,000
E) $36,000 $12,000 $ 72,000
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