A local partnership is liquidating and has only two assets (cash of $10,000 and land with a cost of $35,000). All partnership liabilities have been paid. All partners are personally insolvent. The partners have capital balances and share profits and losses as follows. Brown, capital (40%) Fish, capital (30%) Stone, capital (30%) $ 25,000 15,000 5,000 a. If the land is sold for $25,000, how much cash does each partner receive in a final settlement? b. If the land is sold for $15,000, how much cash does each partner receive in a final settlement? c. If the land is sold for $5,000, how much cash does each partner receive in a final settlement? (Do not round intermediate calculations. Round the final answers to nearest dollar amounts.) Brown Fish Stone Cash distribution Cash distribution a. b. C. Cash distribution
A local partnership is liquidating and has only two assets (cash of $10,000 and land with a cost of $35,000). All partnership liabilities have been paid. All partners are personally insolvent. The partners have capital balances and share profits and losses as follows. Brown, capital (40%) Fish, capital (30%) Stone, capital (30%) $ 25,000 15,000 5,000 a. If the land is sold for $25,000, how much cash does each partner receive in a final settlement? b. If the land is sold for $15,000, how much cash does each partner receive in a final settlement? c. If the land is sold for $5,000, how much cash does each partner receive in a final settlement? (Do not round intermediate calculations. Round the final answers to nearest dollar amounts.) Brown Fish Stone Cash distribution Cash distribution a. b. C. Cash distribution
SWFT Essntl Tax Individ/Bus Entities 2020
23rd Edition
ISBN:9780357391266
Author:Nellen
Publisher:Nellen
Chapter14: Partnerships And Limited Liability Entities
Section: Chapter Questions
Problem 29P
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Transcribed Image Text:A local partnership is liquidating and has only two assets (cash of $10,000 and land with a cost of $35,000). All partnership liabilities
have been paid. All partners are personally insolvent. The partners have capital balances and share profits and losses as follows.
Brown, capital (40%)
Fish, capita1 (30%)
Stone, capital (30%)
$ 25,000
15,000
5,000
a. If the land is sold for $25,000, how much cash does each partner receive in a final settlement?
b. If the land is sold for $15,000, how much cash does each partner receive in a final settlement?
c. If the land is sold for $5,000, how much cash does each partner receive in a final settlement?
(Do not round intermediate calculations. Round the final answers to nearest dollar amounts.)
Brown
Fish
Stone
Cash distribution
a.
b.
Cash distribution
С.
Cash distribution
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