The balance sheet for the Delphine, Xavier, and Olivier partnership follows: Cash Noncash assets Total assets $ 75,120 142,000 $ 217,120 Liabilities Delphine, capital Xavier, capital Olivier, capital Total liabilities and capital $ 50,500 80,580 61,000 25,040 $ 217,120 Delphine, Xavier, and Olivier share profits and losses in the ratio of 4:4:2, respectively. The partners have agreed to terminate the business and estimate that $16,200 in liquidation expenses will be incurred. a. What is the amount of cash that safely can be paid to partners prior to liquidation of noncash assets? b. Calculate the amount of safe payment that can be made to each partner prior to liquidation of noncash assets.

The balance sheet for the Delphine, Xavier, and Olivier partnership follows: Cash Noncash assets Total assets $ 75,120 142,000 $ 217,120 Liabilities Delphine, capital Xavier, capital Olivier, capital Total liabilities and capital $ 50,500 80,580 61,000 25,040 $ 217,120 Delphine, Xavier, and Olivier share profits and losses in the ratio of 4:4:2, respectively. The partners have agreed to terminate the business and estimate that $16,200 in liquidation expenses will be incurred. a. What is the amount of cash that safely can be paid to partners prior to liquidation of noncash assets? b. Calculate the amount of safe payment that can be made to each partner prior to liquidation of noncash assets.

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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