A partnership has the following account balances: Cash, $84,000; Other Assets, $610,000, Liabilities, $374,000; Nixon (50% of profits and losses), $150,000; Cleveland (30%), $100,000, Pierce (20%), $70,000. The company liquidates, and $15,000 becomes available to the partners. Who gets the $15,000? 4- 5- The partnership of W, X, Y, and Z has the following balance sheet: Cash Other assets $50,000 305,000 Liabilities W, capital (50% of profits and losses) X, capital (30%) Y, capital (10%) Z, capital (10%) $ 60,000 80,000 105,000 60,000 50,000 Z is personally insolvent, and one of his creditors is considering suing the partnership for the $25,000 that is currently due. The creditor realizes that liquidation could result from this litigation and does not wish to force such an extreme action unless the creditor is reasonably sure of getting the money that is due. If the partnership sells the other assets, how much money must it receive to ensure that $25,000 would be available from Z's portion of the business? Liquidation expenses are expected to be $35,000.

A partnership has the following account balances: Cash, $84,000; Other Assets, $610,000, Liabilities, $374,000; Nixon (50% of profits and losses), $150,000; Cleveland (30%), $100,000, Pierce (20%), $70,000. The company liquidates, and $15,000 becomes available to the partners. Who gets the $15,000? 4- 5- The partnership of W, X, Y, and Z has the following balance sheet: Cash Other assets $50,000 305,000 Liabilities W, capital (50% of profits and losses) X, capital (30%) Y, capital (10%) Z, capital (10%) $ 60,000 80,000 105,000 60,000 50,000 Z is personally insolvent, and one of his creditors is considering suing the partnership for the $25,000 that is currently due. The creditor realizes that liquidation could result from this litigation and does not wish to force such an extreme action unless the creditor is reasonably sure of getting the money that is due. If the partnership sells the other assets, how much money must it receive to ensure that $25,000 would be available from Z's portion of the business? Liquidation expenses are expected to be $35,000.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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