A partnership is considering possible liquidation because one of the partners (Bell) is personally insolvent. Profits and losses are divided on a 4:3:2:1 basis, respectively. Capital balances at the current time are Bell, capital Hardy, capital Dennard, capital Suddath, capital Bell's creditors have filed a $39,000 claim against the partnership's assets. The partnership currently holds assets of $480,000 and liabilities of $187,000. An independent appraiser indicates that the assets can be sold for $280,000. Required: Prepare a statement of partnership liquidation to determine the amount of cash that Bell would receive from the sale of partnership assets. Note: Amounts to be deducted should be entered with a minus sign. Balances Sale of assets Subtotal Pay liabilities Subtotal Allocate deficit Subtotal Distribute cash Ending balances $ $ $ $ 96,000 83,000 16,000 98,000 $ $ Cash BELL, HARDY, DENNARD, AND SUDDATH PARTNERSHIP Statement of Partnership Liquidation (Hypothetical) 0 0 0 $ 0 $ 0 $ Assets 0 0 0 0 Liabilities $ $ $ 0 0 0 Bell, Capital Hardy, Capital 40% 30% $ $ 0 $ 0 0 0 0 $ $ $ 0 0 0 0 Dennard, Capital 20% $ $ $ 0 0 $ 0 Suddath, Capital 10% 0 $ $ 0 0 0 0

A partnership is considering possible liquidation because one of the partners (Bell) is personally insolvent. Profits and losses are divided on a 4:3:2:1 basis, respectively. Capital balances at the current time are Bell, capital Hardy, capital Dennard, capital Suddath, capital Bell's creditors have filed a $39,000 claim against the partnership's assets. The partnership currently holds assets of $480,000 and liabilities of $187,000. An independent appraiser indicates that the assets can be sold for $280,000. Required: Prepare a statement of partnership liquidation to determine the amount of cash that Bell would receive from the sale of partnership assets. Note: Amounts to be deducted should be entered with a minus sign. Balances Sale of assets Subtotal Pay liabilities Subtotal Allocate deficit Subtotal Distribute cash Ending balances $ $ $ $ 96,000 83,000 16,000 98,000 $ $ Cash BELL, HARDY, DENNARD, AND SUDDATH PARTNERSHIP Statement of Partnership Liquidation (Hypothetical) 0 0 0 $ 0 $ 0 $ Assets 0 0 0 0 Liabilities $ $ $ 0 0 0 Bell, Capital Hardy, Capital 40% 30% $ $ 0 $ 0 0 0 0 $ $ $ 0 0 0 0 Dennard, Capital 20% $ $ $ 0 0 $ 0 Suddath, Capital 10% 0 $ $ 0 0 0 0

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 29P

See similar textbooks

Similar questions

Please help me
A partnership is considering possible liquidation because one of the partners (Bell) is personally insolvent. Profits and losses are divided on a 4:3:2:1 basis, respectively. Capital balances at the current time are Bell, capital Hardy, capital Dennard, capital Suddath, capital Bell's creditors have filed a $31,000 claim against the partnership's assets. The partnership currently holds assets of $400,000 and liabilities of $158,000. An independent appraiser indicates that the assets can be sold for $240,000. $ 76,000 66,000 10,000 90,000 Required: Prepare a statement of partnership liquidation to determine the amount of cash that Bell would receive from the sale of partnership assets. Note: Amounts to be deducted should be entered with a minus sign. Balances Sale of assets Subtotal Pay liabilities Subtotal Allocate deficit Subtotal Distribute cash Ending balances Cash BELL, HARDY, DENNARD, AND SUDDATH PARTNERSHIP Statement of Partnership Liquidation (Hypothetical) Assets Liabilities…
A partnership is considering possible liquidation because one of the partners (Bell) is personally insolvent. Profits and losses are divided on a 4:3:2:1 basis, respectively. Capital balances at the current time are Bell, capital $ 111,000 Hardy, capital 93,000 Dennard, capital 10,000 Suddath, capital 104,000 Bell’s creditors have filed a $45,000 claim against the partnership’s assets. The partnership currently holds assets of $540,000 and liabilities of $222,000. If the assets can be sold for $310,000, what is the minimum amount that Bell’s creditors would receive? Multiple Choice $1,000 $4,600 $0 $19,000
A partnership is considering possible liquidation because one of the partners (Bell) is personally insolvent. Profits and losses are divided on a 4:3:2:1 basis, respectively. Capital balances at the current time are Bell, capital $ 106,000 Hardy, capital 91,000 Dennard, capital 12,000 Suddath, capital 102,000 Bell’s creditors have filed a $43,000 claim against the partnership’s assets. The partnership currently holds assets of $520,000 and liabilities of $209,000. An independent appraiser indicates that the assets can be sold for $300,000. Required: Prepare a statement of partnership liquidation to determine the amount of cash that Bell would receive from the sale of partnership assets. Note: Amounts to be deducted should be entered with a minus sign
A partnership is considering possible liquidation because one of the partners (Bell) is personally insolvent. Profits and losses are divided on a 4:3:2:1 basis, respectively. Capital balances at the current time are Bell, capital $ 108,500 Hardy, capital 92,000 Dennard, capital 11,000 Suddath, capital 103,000 Bell’s creditors have filed a $44,000 claim against the partnership’s assets. The partnership currently holds assets of $530,000 and liabilities of $215,500. If the assets can be sold for $305,000, what is the minimum amount that Bell’s creditors would receive?
A partnership is considering possible liquidation because one of the partners (Bell) is personally Insolvent. Profits and losses are divided on a 4:3:2:1 basis, respectively. Capital balances at the current time are Bell, capital Hardy, capital Dennard, capital Suddath, capital $ 111,000 93,000 10,000 104,000 Bell's creditors have filed a $45,000 claim against the partnership's assets. The partnership currently holds assets of $540,000 and liabilities of $222,000. An Independent appraiser Indicates that the assets can be sold for $310,000. Required: Prepare a statement of partnership liquidation to determine the amount of cash that Bell would receive from the sale of partnership assets. Note: Amounts to be deducted should be entered with a minus sign. Balances Cash BELL, HARDY, DENNARD, AND SUDDATH PARTNERSHIP Statement of Partnership Liquidation (Hypothetical) Assets Liabilities Bell, Capital 40% Hardy, Capital 30% Dennard, Capital 20% Suddath, Capital 10% Sale of assets Subtotal $ 0…
A partnership is considering possible liquidation because one of the partners (Bell) is personally insolvent. Profits and losses are divided on a 4:3:2:1 basis, respectively. Capital balances at the current time are Bell's creditors have filed a $43,000 claim against the partnership's assets. The partnership currently holds assets of $520,000 and liabilities of $209,000. An independent appraiser indicates that the assets can be sold for $300,000.
A partnership is considering possible liquidation because one of the partners (Bell) is personally insolvent. Profits and losses are divided on a 4:3:2:1 basis, respectively. Capital balances at the current time are Bell, capital Hardy, capital Dennard, capital Suddath, capital $ 50,000 56,000 14,000 80,000 Bell's creditors have filed a $21,000 claim against the partnership's assets. The partnership currently holds assets of $300,000 and liabilities of $100,000. An independent appraiser indicates that the assets can be sold for $190,000. Required: Prepare a statement of partnership liquidation to determine the amount of cash that Bell would receive from the sale of partnership assets. Note: Amounts to be deducted should be entered with a minus sign. BELL, HARDY, DENNARD, AND SUDDATH PARTNERSHIP Statement of Partnership Liquidation (Hypothetical) Cash Assets Liabilities Bell, Capital Hardy, Capital 40% 30% Dennard, Capital 20% Suddath, Capital 10% Balances Sale of assets Subtotal $ 0 0…
i need the answer quickly
A partnership is considering possible liquidation because one of the partners (Bell) is personally insolvent. Profits and losses are divided on a 4:3:2:1 basis, respectively. Capital balances at the current time are Bell’s creditors have filed a $21,000 claim against the partnership’s assets. The partnership currently holds assets of $300,000 and liabilities of $100,000. If the assets can be sold for $190,000, what is the minimum amount that Bell’s creditors would receive? –0– $2,000 $2,800 $6,000
A partnership is in the process of liquidation since only one of the partners(ME) is solvent. Capital balances at the time of liquidation were asfollows. Profits and losses are divided on a 4:2:2:2 basis, respectively. MA, Capital 60,000SA, Capital 67,000YA, Capital 17,000ME, Capital 96,000 MA’s creditors filed a P25,000 claim against the partnership’s assets. Atthat time, the partnership held assets reported at P360,000 and liabilitiesof P120,000. If the assets could be sold for P228,000, what is the minimum amount thatMA’s creditors would have received?A. 38,720 C. 2,500B. 36,000 D. 0
A partnership has decided to liquidate its operations. Prior to beginning the liquidation process, the partnership had cash balances of $12,000 and noncash assets of $210,000. At that time liabilities were $125,000 of which $25,000 represented a note payable to Partner B. The capital information for the current partners is as follows: Partner A Partner B Partner CProfit and loss percentages . . . . . . . . . . . 50% 30% 20%Capital balances . . . . . . . . . . . . . . . . . . . .$75,000 $42,000 $(20,000)The following events occurred over the four-month liquidation period, and it was decided that all available cash would be distributed at the end of each month.Month 1—Payments of $35,000 were received on accounts receivable with a book value of $43,000, and the balance of those accounts were written off. A $12,000 allowance for uncollectible accounts was established against…