The balance sheet of Morgan and Rockwell was as follows immediately prior to the partnership's liquidation: cash, $20,500; other assets, $141,300; liabilities, $26,800; Morgan, capital, $64,000; Rockwell, capital, $71,000. The other assets were sold for $120,900. Morgan and Rockwell share profits and losses in a 2:1 ratio. As a final cash distribution from the liquidation, Morgan will receive cash totaling

The balance sheet of Morgan and Rockwell was as follows immediately prior to the partnership's liquidation: cash, $20,500; other assets, $141,300; liabilities, $26,800; Morgan, capital, $64,000; Rockwell, capital, $71,000. The other assets were sold for $120,900. Morgan and Rockwell share profits and losses in a 2:1 ratio. As a final cash distribution from the liquidation, Morgan will receive cash totaling

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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The balance sheet of Morgan and Rockwell was as follows immediately prior to the partnership's liquidation: cash, $23,600; other assets, $147,000; liabilities, $35,000; Morgan, capital, $61,500; Rockwell, capital, $74,100. The other assets were sold for $123,300. Morgan and Rockwell share profits and losses in a 2:1 ratio. As a final cash distribution from the liquidation, Morgan will receive cash totaling Oa. $61,500 Ob. $45,700 Oc. $23,600 Od. $15,733
The balance sheet of Morgan and Rockwell was as follows immediately prior to the partnership's liquidation: cash, $24,800; other assets, $142,800; liabilities, $42,200; Morgan, capital, $56,600; Rockwell, capital, $68,800. The other assets were sold for $132,900. Morgan and Rockwell share profits and losses in a 2:1 ratio. As a final cash distribution from the liquidation, Morgan will receive cash totaling a.$16,533 b.$56,600 c.$24,800 d.$50,000
The balance sheet of Morgan and Rockwell was as follows immediately prior to the partnership's liquidation: cash, S22,700; other assets, $143,400; liabilities, $42,500; Morgan, capital, $58,400; Rockwell, capital, $65,200. The other assets were sold for $120,000. Morgan and Rockwell share profits and losses in a 2:1 ratio. As a final cash distribution from the liquidation, Morgan will receive cash totaling a. $58,400 Ob. $42,800 Oc. S15,133 Od. S22,700
The balance sheet of Marilyn and Monroe was as follows immediately prior to the partnership being liquidated: cash, $20,000; other assets, $160,000; liabilities, $40,000; Marilyn capital, $60,000; Monroe capital, $80,000. The other assets were sold for $139,000. Marilyn and Monroe share profits and losses in a 2:1 ratio. As a final cash distribution from the liquidation, Marilyn will receive cash totaling: Group of answer choices a) $49,500 b) $60,000 c) $46,000 d) $51,000
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The balance sheet for the Delphine, Xavier, and Olivier partnership follows: 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 $12,000 in liquidation expenses will be incurred. What is the amount of cash that safely can be paid to partners prior to liquidation of noncash assets? How should the safe amount of cash determined in (a) be distributed to the partners?
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The following condensed balance sheet is for the partnership of Miller, Tyson, and Watson, who share profits and losses in the ratio of 6:2:2, respectively: Cash $ 63,000 Liabilities $ 53,000 Other assets 160,000 Miller, capital 75,000 Tyson, capital 75,000 Watson, capital 20,000 Total assets $ 223,000 Total liabilities and capital $ 223,000 a. Assuming no liquidation expenses, calculate the safe payments that can be made to partners at this point in time. Miller Tyson Watson Safe payments b. For how much money must the other assets be sold so that each partner receives some amount of cash in a liquidation? other assets must be sold (for an amount less than) or (for an amount over)