Turner, Roth, and Lowe are partners who share income and loss in a 1:4:5 ratio (in percents: Turner, 10% ; Roth, 40% ; and Lowe, 50% ). The partners decide to liquidate the partnership. Immediately before liquidation, the partnership balance sheet shows total assets, $152,400; total liabilities, $100,000; Turner, Capital, $4,700; Roth, Capital, $15,100; and Lowe, Capital, $32,600. The liquidation resulted in a loss of $91,400. Required: a. Allocate the loss to the partners. b. Determine how much each partner should contribute to the partnership to cover any remaining capital deficiency. Complete this question by entering your answers in the tabs below. Required A Required B Allocate the loss to the partners. (Losses and deficits should be indicated with a minus sign.) Initial capital balances Allocation of gains (losses) Capital balances after gains (losses) Turner Roth Lowe Total $ 4,700 $ 15,100 $ 32,600 $ 52,400

Turner, Roth, and Lowe are partners who share income and loss in a 1:4:5 ratio (in percents: Turner, 10% ; Roth, 40% ; and Lowe, 50% ). The partners decide to liquidate the partnership. Immediately before liquidation, the partnership balance sheet shows total assets, $152,400; total liabilities, $100,000; Turner, Capital, $4,700; Roth, Capital, $15,100; and Lowe, Capital, $32,600. The liquidation resulted in a loss of $91,400. Required: a. Allocate the loss to the partners. b. Determine how much each partner should contribute to the partnership to cover any remaining capital deficiency. Complete this question by entering your answers in the tabs below. Required A Required B Allocate the loss to the partners. (Losses and deficits should be indicated with a minus sign.) Initial capital balances Allocation of gains (losses) Capital balances after gains (losses) Turner Roth Lowe Total $ 4,700 $ 15,100 $ 32,600 $ 52,400

SWFT Comprehensive Vol 2020

43rd Edition

ISBN:9780357391723

Author:Maloney

Publisher:Maloney

Chapter21: Partnerships

Section: Chapter Questions

Problem 11BCRQ

See similar textbooks