Connect Access Card for Advanced Financial Accounting
12th Edition
ISBN: 9781260165098
Author: Christensen, Theodore E., COTTRELL, David
Publisher: McGraw-Hill Education
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Question
Chapter 16, Problem 16.2.5E
To determine
Introduction: Installment liquidation involves selling assets of
To choose: The correct answer to show the amount received by respective partners based on the given conditions.
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9.
Assume that residual profits and losses are shared equally among the three partners. Based
on this information, calculate the maximum amount that Jude can expect to receive from the
partnership liquidation is: *
de, Revelation and Genesis 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 partners has been marshaled:
Capital Balances
Personal Assets
Personal Liabilities
Jude
P70,000
P80,000
P40,000
Revelation
(60,000)
30,000
50,000
,000
Genesis
(30,000)
70,000
Total
(P20,000)
O P20,000
P40,000
The CDG Carlos, Dan, and Gall Partnership has decided to liquidate as of December 1, 20X6. A balance sheet on the date follows:
Assets
Cash
Accounts Receivable (net)
Inventories
Property, Plant and Equipment (net)
Total Assets
Liabilities and Capital
Liabilities:
Accounts Payable
Capital:
CDG PARTNERSHIP
Balance Sheet
At December 1, 20x6
Carlos, Capital
Dan, Capital
Gail, Capital
Total Capital
Total Liabilities and Capital
$138,000
68,000
78,000
Personal assets
Personal liabilities
Personal net worth
$ 34,000
93,000
118,000
336,000
$581,000
$297,000
284,000
$581,000
Additional Information
1. Each partner's personal assets (excluding partnership capital interests) and personal liabilities as of December 1, 20X6, follow:
Carlos
Dan
Gail
$ 268,000 $310,000 $368,000
(239,000) (231,000) (340,000)
$ 87,000 $ 28,000
$ 29,000
2. Carlos, Dan, and Gall share profits and losses in the ratio 15:45:40,
3. CDG sold all noncash assets on December 10, 20X6, for $276,000.
Statement I: In lumpsum liquidation, the remaining cash available after realization and payment of liquidation expenses, will be equal to the total interest of the partners.Statement II: In installment liquidation, the partner who has the highest absorption capacity shall be prioritized in the payment of interest.
Group of answer choices
Both statements are false
Both statements are true
S1 is true; S2 is false
S1 is false; S2 is true
Chapter 16 Solutions
Connect Access Card for Advanced Financial Accounting
Ch. 16 - What are the major causes of a dissolution? What...Ch. 16 - Prob. 16.2QCh. 16 - Prob. 16.3QCh. 16 - Prob. 16.4QCh. 16 - Contrast a lump-sum liquidation with an...Ch. 16 - Prob. 16.6QCh. 16 - Prob. 16.7QCh. 16 - Prob. 16.8QCh. 16 - Prob. 16.9QCh. 16 - Prob. 16.10Q
Ch. 16 - Prob. 16.11QCh. 16 - The installment liquidation process uses a...Ch. 16 - Prob. 16.13QCh. 16 - Prob. 16.14QCh. 16 - Prob. 16.15QCh. 16 - Cash Distributions to Partners Analysis The...Ch. 16 - Prob. 16.2CCh. 16 - Prob. 16.3CCh. 16 - Sharing Losses during Liquidation Research Hiller,...Ch. 16 - Prob. 16.1.1ECh. 16 - Prob. 16.1.2ECh. 16 - Prob. 16.1.3ECh. 16 - Prob. 16.1.4ECh. 16 - Prob. 16.1.5ECh. 16 - Prob. 16.1.6ECh. 16 - Prob. 16.1.7ECh. 16 - Prob. 16.2.1ECh. 16 - Prob. 16.2.2ECh. 16 - Prob. 16.2.3ECh. 16 - Prob. 16.2.4ECh. 16 - Prob. 16.2.5ECh. 16 - Prob. 16.2.6ECh. 16 - Prob. 16.3ECh. 16 - Prob. 16.4ECh. 16 - Prob. 16.5ECh. 16 - Prob. 16.6ECh. 16 - Prob. 16.7ECh. 16 - Prob. 16.8ECh. 16 - Confirmation of Cash Distribution Plan Refer to...Ch. 16 - Prob. 16.10ECh. 16 - Prob. 16.11.1AECh. 16 - Prob. 16.11.2AECh. 16 - Prob. 16.11.3AECh. 16 - Prob. 16.11.4AECh. 16 - Prob. 16.11.5AECh. 16 - Prob. 16.11.6AECh. 16 - Prob. 16.11.7AECh. 16 - Prob. 16.11.8AECh. 16 - Prob. 16.11.9AECh. 16 - Prob. 16.11.10AECh. 16 - Prob. 16.11.11AECh. 16 - Prob. 16.12AECh. 16 - Prob. 16.13PCh. 16 - Prob. 16.14PCh. 16 - Prob. 16.15PCh. 16 - Prob. 16.16PCh. 16 - Prob. 16.17PCh. 16 - Prob. 16.18PCh. 16 - Matching Terms Match the items in the left-hand...Ch. 16 - Prob. 16.20P
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