6. The ABC partnership balance sheet, immediately before liquidation, had the following balances: cash: $40,000, other assets: $260,000, liabilities: $60,000, A capital: $130,000, B capital: $80,000, C capital: $30,000. The P&L ratio was 3:2:5. Other assets were sold for $160,000, the liabilities were paid in full and any partner with negative capital invested the necessary amount. How much was partner B's distribution? $60,000 A) B) $100,000 C) $32,000 D) $28,000 7. Assume the same information as in question #6, except that a partner with negative capital will not invest the necessary amount. How much will be partner A's distribution? A) $52,000 B) $88,000 C) $84,000 D) $100,000
6. The ABC partnership balance sheet, immediately before liquidation, had the following balances: cash: $40,000, other assets: $260,000, liabilities: $60,000, A capital: $130,000, B capital: $80,000, C capital: $30,000. The P&L ratio was 3:2:5. Other assets were sold for $160,000, the liabilities were paid in full and any partner with negative capital invested the necessary amount. How much was partner B's distribution? $60,000 A) B) $100,000 C) $32,000 D) $28,000 7. Assume the same information as in question #6, except that a partner with negative capital will not invest the necessary amount. How much will be partner A's distribution? A) $52,000 B) $88,000 C) $84,000 D) $100,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:6. The ABC partnership balance sheet, immediately before liquidation,
had the following balances: cash: $40,000, other assets: $260,000,
liabilities: $60,000, A capital: $130,000, B capital: $80,000, C
capital: $30,000. The P&L ratio was 3:2:5. Other assets were sold for
$160,000, the liabilities were paid in full and any partner with
negative capital invested the necessary amount. How much was
partner B's distribution?
$60,000
A)
B) $100,000
C) $32,000
D) $28,000
7. Assume the same information as in question #6, except that a partner
with negative
capital will not invest the necessary amount. How much will be partner
A's distribution?
A) $52,000
B)
$88,000
C) $84,000
D) $100,000
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