Apple, Banana, and Pear partnership began the liquidation process with the following balance sheet (profit and loss sharing percentages are in parenthesis): Cash $30,000 Liabilities $150,000 Noncash Assets $400,000 Apple Capital $100,000 (30%) Banana Capital $ 60,000 (20%) Pear Capital $120,000 (50%) A. If the noncash assets are sold for $250,000 what amount of the loss will be allocated to Apple? B. If the noncash assets are sold for only $100,000 which partner(s) capital accounts will be in a deficit balance and require a contribution of assets to the partnership? Answer a and b both, please.

Apple, Banana, and Pear partnership began the liquidation process with the following balance sheet (profit and loss sharing percentages are in parenthesis): Cash $30,000 Liabilities $150,000 Noncash Assets $400,000 Apple Capital $100,000 (30%) Banana Capital $ 60,000 (20%) Pear Capital $120,000 (50%) A. If the noncash assets are sold for $250,000 what amount of the loss will be allocated to Apple? B. If the noncash assets are sold for only $100,000 which partner(s) capital accounts will be in a deficit balance and require a contribution of assets to the partnership? Answer a and b both, please.

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter9: Acquisitions Of Property

Section: Chapter Questions

Problem 44P

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