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Problem 10-20 (Algo) (LO 10-6) The following balance sheet is for a partnership in which the partners have decided to terminate operations and liquidate assets. The partners estimate liquidation expenses will be $15,000. Cash Noncash assets Liabilities $ 50,000 120,000 $ 100,000 240,000 Arch, capital (40%) Bibb, capital (20%) Dao, capital (40%) 60,000 110,000 Total assets $ 340,000 Total liabilities and capital $ 340,000 Required: Prepare a proposed schedule of liquidation to carry out a preliminary distribution of partnership assets at the date of termination. Note: Amounts to be deducted should be entered with a minus sign. Beginning balances Pay liabilities Maximum liquidation expenses Maximum loss - noncash assets Initial safe payments ARCH, BIBB, AND DAO PARTNERSHIP Proposed Schedule of Liquidation Date of Termination Noncash Cash Assets Liabilities Arch, Capital Bibb, Capital Dao, Capital 40% 20% 40%

Problem 10-20 (Algo) (LO 10-6) The following balance sheet is for a partnership in which the partners have decided to terminate operations and liquidate assets. The partners estimate liquidation expenses will be $15,000. Cash Noncash assets Liabilities $ 50,000 120,000 $ 100,000 240,000 Arch, capital (40%) Bibb, capital (20%) Dao, capital (40%) 60,000 110,000 Total assets $ 340,000 Total liabilities and capital $ 340,000 Required: Prepare a proposed schedule of liquidation to carry out a preliminary distribution of partnership assets at the date of termination. Note: Amounts to be deducted should be entered with a minus sign. Beginning balances Pay liabilities Maximum liquidation expenses Maximum loss - noncash assets Initial safe payments ARCH, BIBB, AND DAO PARTNERSHIP Proposed Schedule of Liquidation Date of Termination Noncash Cash Assets Liabilities Arch, Capital Bibb, Capital Dao, Capital 40% 20% 40%

SWFT Essntl Tax Individ/Bus Entities 2020
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 2BD
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Problem 10-20 (Algo) (LO 10-6) The following balance sheet is for a partnership in which the partners have decided to terminate operations and liquidate assets. The partners estimate liquidation expenses will be $15,000. Cash Noncash assets Liabilities $ 50,000 120,000 $ 100,000 240,000 Arch, capital (40%) Bibb, capital (20%) Dao, capital (40%) 60,000 110,000 Total assets $ 340,000 Total liabilities and capital $ 340,000 Required: Prepare a proposed schedule of liquidation to carry out a preliminary distribution of partnership assets at the date of termination. Note: Amounts to be deducted should be entered with a minus sign. Beginning balances Pay liabilities Maximum liquidation expenses Maximum loss - noncash assets Initial safe payments ARCH, BIBB, AND DAO PARTNERSHIP Proposed Schedule of Liquidation Date of Termination Noncash Cash Assets Liabilities Arch, Capital Bibb, Capital Dao, Capital 40% 20% 40%
Transcribed Image Text:Problem 10-20 (Algo) (LO 10-6) The following balance sheet is for a partnership in which the partners have decided to terminate operations and liquidate assets. The partners estimate liquidation expenses will be $15,000. Cash Noncash assets Liabilities $ 50,000 120,000 $ 100,000 240,000 Arch, capital (40%) Bibb, capital (20%) Dao, capital (40%) 60,000 110,000 Total assets $ 340,000 Total liabilities and capital $ 340,000 Required: Prepare a proposed schedule of liquidation to carry out a preliminary distribution of partnership assets at the date of termination. Note: Amounts to be deducted should be entered with a minus sign. Beginning balances Pay liabilities Maximum liquidation expenses Maximum loss - noncash assets Initial safe payments ARCH, BIBB, AND DAO PARTNERSHIP Proposed Schedule of Liquidation Date of Termination Noncash Cash Assets Liabilities Arch, Capital Bibb, Capital Dao, Capital 40% 20% 40%
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