GEN COMBO ADVANCED ACCOUNTING; CONNECT ACCESS CARD
13th Edition
ISBN: 9781260087383
Author: Joe Ben Hoyle
Publisher: McGraw-Hill Education
expand_more
expand_more
format_list_bulleted
Question
Chapter 15, Problem 28P
To determine
Determine the amount for which the
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
The partnership of Winn, Xie, Yang, and Zed has the following balance sheet:
Zed is personally insolvent, and one of his creditors is considering suing the partnership for the $10,000 that is currently owed. The creditor realizes that this litigation could result in partnership liquidation and does not wish to force such an extreme action unless Zed is reasonably sure of obtaining at least $10,000 from the liquidation.
Determine the amount for which the partnership must sell the other assets to ensure that Zed receives $10,000 from the liquidation. Liquidation expenses are expected to be $30,000.
The partnership of Anderson, Berry, Hammond, and Winwood is being liquidated. It currently holds cash of $20,000 but no other assets. Liabilities amount to $30,000. The capital balances are
If both Hammond and Winwood are personally insolvent, how much money must Berry contribute to this partnership?
If only Winwood is personally insolvent, how much money must Hammond contribute to the partnership? How will these funds be disbursed?
If only Hammond is personally insolvent, how much money should Anderson receive from the liquidation?
The following balance sheet is for a local partnership in which the partners have become very unhappy with each other.
To avoid more conflict, the partners have decided to cease operations and sell all assets. Using this information, answer the following questions. Each question should be viewed as an situation related to the partnership’s liquidation.
The $10,000 cash that exceeds the partnership liabilities is to be disbursed immediately. If profits and losses are allocated to Adams, Baker, Carvil, and Dobbs on a 2:3:3:2 basis, respectively, how will the $10,000 be divided?
The $10,000 cash that exceeds the partnership liabilities is to be disbursed immediately. If profits and losses are allocated on a 2:2:3:3 basis, respectively, how will the $10,000 be divided?
The building is immediately sold for $70,000 to give total cash of $110,000. The liabilities are then paid, leaving a cash balance of $80,000. This cash is to be distributed to the partners. How much of this money will each…
Chapter 15 Solutions
GEN COMBO ADVANCED ACCOUNTING; CONNECT ACCESS CARD
Ch. 15 - Prob. 1QCh. 15 - Prob. 2QCh. 15 - Prob. 3QCh. 15 - Prob. 4QCh. 15 - What is the purpose of a statement of liquidation?...Ch. 15 - Prob. 6QCh. 15 - Prob. 7QCh. 15 - Prob. 8QCh. 15 - What is the purpose of a proposed schedule of...Ch. 15 - Prob. 10Q
Ch. 15 - Prob. 1PCh. 15 - Prob. 2PCh. 15 - Prob. 3PCh. 15 - Prob. 4PCh. 15 - A partnership is considering possible liquidation...Ch. 15 - What is a predistribution plan? a. A list of the...Ch. 15 - Prob. 7PCh. 15 - Prob. 8PCh. 15 - Prob. 9PCh. 15 - Prob. 10PCh. 15 - Prob. 11PCh. 15 - Prob. 12PCh. 15 - Prob. 13PCh. 15 - Prob. 14PCh. 15 - Prob. 15PCh. 15 - Prob. 16PCh. 15 - Prob. 17PCh. 15 - Prob. 18PCh. 15 - Prob. 19PCh. 15 - The following balance sheet is for a local...Ch. 15 - Prob. 21PCh. 15 - Prob. 22PCh. 15 - Prob. 23PCh. 15 - Prob. 24PCh. 15 - Prob. 25PCh. 15 - Prob. 26PCh. 15 - March, April, and May have been in partnership for...Ch. 15 - Prob. 28PCh. 15 - Prob. 29PCh. 15 - Prob. 30PCh. 15 - Prob. 31PCh. 15 - Prob. 32PCh. 15 - Prob. 33P
Knowledge Booster
Similar questions
- Prior to liquidating their partnership, Heller and Warren had capital accounts of $128,000 and $67,000, respectively. The partnership assets were sold for $49,000. The partnership had no liabilities. Heller and Warren share income and losses equally. Required: a. Determine the amount of Warren's deficiency. b. Determine the amount distributed to Heller assuming that Warren is unable to satisfy the deficiency.arrow_forwardThe partnership of Matteson, Richton, and O’Toole has existed for a number of years. At the present time the partners have the following capital balances and profit and loss sharing percentages: O’Toole elects to withdraw from the partnership, leaving Matteson and Richton to operate the business. Following the original partnership agreement, when a partner withdraws, the partnership and all of its individual assets are to be reassessed to current fair values by an independent appraiser. The withdrawing partner will receive cash or other assets equal to that partner’s current capital balance after including an appropriate share of any adjustment indicated by the appraisal. Gains and losses indicated by the appraisal are allocated using the regular profit and loss percentages. An independent appraiser is hired and estimates that the partnership as a whole is worth $600,000. Regarding the individual assets, the appraiser finds that a building with a book value of $180,000 has a fair…arrow_forwardPrior to liquidating their partnership, Sam and Brian had capital accounts of $60,000 and $240,000, respectively. The partnership assets were sold for $120,000. The partnership had no liabilities. Sam and Brian share income and losses equally Determine the amount of Sam’s deficiency. Determine the amount distributed to Brian, assuming Sam is unable to satisfy the deficiency. Show your work:arrow_forward
- Prior to liquidating their partnership, Bonilla and Perez had capital accounts of $185,000 and $245,000, respectively. The partnership assets were sold for $30,000. The partnership had no liabilities. Bonilla and Perez share income and losses equally.a. Determine the amount of Bonilla’s deficiency.b. Determine the amount distributed to Perez, assuming that Bonilla is unable to satisfy the deficiency.arrow_forwardThe partnership of Duncan, Howard, and Kearny was in debt for $100,000. What courses of action could the creditors pursue? With firm assets insufficient, can individual assets of the several partners be moved against?arrow_forwardGreen, Black, and Blue each own one-third of Color Partnership. Each has a zero outside basis in their partnership interest. Color is a cash basis service company whose sole assets are $600 in accounts receivable. The partnership has no liabilities. Green sells his partnership interest to Purple at a Fair Market Value of $200. How much, if any gain or loss does Green recognize on the sale of the partnership interest? If there is a recognized gain or loss by Green what is the character of it? If no gain or loss enter $0? What is Purple's basis in the partnership? Assume no elections are made at the partnership level. When the receivable is collected how much income is allocated to Purple. After the receivables are collected what is Purple's outside adjusted basis in the partnership? If the partnership liquidates distributing $200 to each partner if Purple recognizes gain or loss indicate the amount if a loss enter in parentheses if no gain or loss enter $0 If Purple recognizes gain or…arrow_forward
- A partnership is considering possible liquidation because one of the partners (Bell) is personally insolvent. Profits and losses are divided on a 4:3:2:1 basis, respectively. Capital balances at the current time are Bell’s creditors have filed a $21,000 claim against the partnership’s assets. The partnership currently holds assets of $300,000 and liabilities of $100,000. If the assets can be sold for $190,000, what is the minimum amount that Bell’s creditors would receive? –0– $2,000 $2,800 $6,000arrow_forwardA partnership is considering possible liquidation because one of the partners (Bell) is personally insolvent. Profits and losses are divided on a 4:3:2:1 basis, respectively. Capital balances at the current time are Bell, capital $ 65,000 Hardy, capital 62,000 Dennard, capital 14,000 Suddath, capital 86,000 Bell’s creditors have filed a $27,000 claim against the partnership’s assets. The partnership currently holds assets of $360,000 and liabilities of $133,000. If the assets can be sold for $220,000, what is the minimum amount that Bell’s creditors would receive?arrow_forwardB promised that he will deliver a house and lot for the partnership to use for its manufacturing process. On the agreed date, B was not able to show the partnership the location of the house and lot. Later on, B informed the partnership that the house and lot were burned down. What is the remedy of the partnership against B? The partnership may file a civil case to compel B to pay damages. The partnership may file a civil case for judicial settlement of B. The partnership may file a criminal complaint of estafa against B. The partnership may file a criminal complaint of trespassing against B.arrow_forward
- Prior to liquidating their partnership, Samuel and Brian had capital accounts of $60,000 and $240,000, respectively .The partnership assets were sold for $120,000. The partnership had no liabilities. Samuel and Brian share income and losses equally.. Required: Determine the amount of Samuel’s deficiency Determine the amount distributed to Brian, assuming Samuel is unable to satisfy the deficiency Show Your Work:.arrow_forwardA partnership is considering possible liquidation because one of the partners (Bell) is personally insolvent. Profits and losses are divided on a 4:3:2:1 basis, respectively. Capital balances at the current time are Bell, capital $ 111,000 Hardy, capital 93,000 Dennard, capital 10,000 Suddath, capital 104,000 Bell’s creditors have filed a $45,000 claim against the partnership’s assets. The partnership currently holds assets of $540,000 and liabilities of $222,000. If the assets can be sold for $310,000, what is the minimum amount that Bell’s creditors would receive? Multiple Choice $1,000 $4,600 $0 $19,000arrow_forwardJimmy, Matt, and Jay are in the process of forming a partnership. According to their partnership agreement, Jimmy is to invest $100,000 and devote one-half time to the partnership, Matt is to invest $50,000 and devote three-fourths time to the partnership, and Jay is to make no investment and devote full time to the partnership. If the partnership encounters any liability that exceeds partnership assets, what is Jay's potential liability for the debts of the partnership, if any, and why? For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac). В I U S Paragraph Open Sans,s... v 10pt A v Ix 田田図 ABC - 田用图 P O WORDS POWERED BY TINY II +] IIIarrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you