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Cash 60,000 Liabilities Adams, capital Baker, capital Carvil, capital Dobbs, capital 50,000 149,500 51,000 100,000 159,500 Land 230,000 Building 220,000 Total assets $ 510, 000 Total liabilities and capital $ 510,000 To avoid more conflict, the partners have decided to cease operations and sell all assets. Using this information, answer the following questions. Each question should be viewed as an independent situation related to the partnership's liquidation. a. The $10,000 cash that exceeds the partnership liabilities is to be disbursed immediately. If profits and losses are allocated to Adams, Baker, Carvil, and Dobbs on a 2:3:3:2 basis, respectively, how will the $10,000 be divided? b. The $10,000 cash that exceeds the partnership liabilities is to be disbursed immediately. If profits and losses are allocated on a 2:2:3:3 basis, respectively, how will the $10,000 be divided? c. The building is immediately sold for $140,000 to give total cash of $200,000. The liabilities are then paid, leaving a cash balance of $150,000. This cash is to be distributed to the partners. How much of this money will each partner receive if profits and losses are allocated to Adams, Baker, Carvil, and Dobbs on a 1:3:3:3 basis, respectively? (Do not round intermediate calculations.) d. Assume that profits and losses are allocated to Adams, Baker, Carvil, and Dobbs on a 1:3:4:2 basis, respectively. How much money must the firm receive from selling the land and building to ensure that Carvil receives a portion? (Do not round intermediate calculations.) a. Adams Baker Carvil Dobbs b. Adams Baker Carvil Dobbs c. Adams Baker Carvil Dobbs d. Minimum amount of sale value

Cash 60,000 Liabilities Adams, capital Baker, capital Carvil, capital Dobbs, capital 50,000 149,500 51,000 100,000 159,500 Land 230,000 Building 220,000 Total assets $ 510, 000 Total liabilities and capital $ 510,000 To avoid more conflict, the partners have decided to cease operations and sell all assets. Using this information, answer the following questions. Each question should be viewed as an independent situation related to the partnership's liquidation. a. The $10,000 cash that exceeds the partnership liabilities is to be disbursed immediately. If profits and losses are allocated to Adams, Baker, Carvil, and Dobbs on a 2:3:3:2 basis, respectively, how will the $10,000 be divided? b. The $10,000 cash that exceeds the partnership liabilities is to be disbursed immediately. If profits and losses are allocated on a 2:2:3:3 basis, respectively, how will the $10,000 be divided? c. The building is immediately sold for $140,000 to give total cash of $200,000. The liabilities are then paid, leaving a cash balance of $150,000. This cash is to be distributed to the partners. How much of this money will each partner receive if profits and losses are allocated to Adams, Baker, Carvil, and Dobbs on a 1:3:3:3 basis, respectively? (Do not round intermediate calculations.) d. Assume that profits and losses are allocated to Adams, Baker, Carvil, and Dobbs on a 1:3:4:2 basis, respectively. How much money must the firm receive from selling the land and building to ensure that Carvil receives a portion? (Do not round intermediate calculations.) a. Adams Baker Carvil Dobbs b. Adams Baker Carvil Dobbs c. Adams Baker Carvil Dobbs d. Minimum amount of sale value

FINANCIAL ACCOUNTING
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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$ 60,000 230,000 Cash Liabilities $ 50,000 Land Adams, capital Baker, capital Carvil, capital Dobbs, capital Total liabilities and capital 149,500 51,000 100,000 159,500 Building 220,000 Total assets $ 510,000 $ 510,000 To avoid more conflict, the partners have decided to cease operations and sell all assets. Using this information, answer the following questions. Each question should be viewed as an independent situation related to the partnership's liquidation. a. The $10,000 cash that exceeds the partnership liabilities is to be disbursed immediately. If profits and losses are allocated to Adams, Baker, Carvil, and Dobbs on a 2:3:3:2 basis, respectively, how will the $10,000 be divided? b. The $10,000 cash that exceeds the partnership liabilities is to be disbursed immediately. If profits and losses are allocated on a 2:2:3:3 basis, respectively, how will the $10,000 be divided? c. The building is immediately sold for $140,000 to give total cash of $200,000. The liabilities are then paid, leaving a cash balance of $150,000. This cash is to be distributed to the partners. How much of this money will each partner receive if profits and losses are allocated to Adams, Baker, Carvil, and Dobbs on a 1:3:3:3 basis, respectively? (Do not round intermediate calculations.) d. Assume that profits and losses are allocated to Adams, Baker, Carvil, and Dobbs on a 1:3:4:2 basis, respectively. How much money must the firm receive from selling the land and building to ensure that Carvil receives a portion? (Do not round intermediate calculations.) a. Adams Baker Carvil Dobbs b. Adams Baker Carvil Dobbs c. Adams Baker Carvil Dobbs d. Minimum amount of sale value
Transcribed Image Text:$ 60,000 230,000 Cash Liabilities $ 50,000 Land Adams, capital Baker, capital Carvil, capital Dobbs, capital Total liabilities and capital 149,500 51,000 100,000 159,500 Building 220,000 Total assets $ 510,000 $ 510,000 To avoid more conflict, the partners have decided to cease operations and sell all assets. Using this information, answer the following questions. Each question should be viewed as an independent situation related to the partnership's liquidation. a. The $10,000 cash that exceeds the partnership liabilities is to be disbursed immediately. If profits and losses are allocated to Adams, Baker, Carvil, and Dobbs on a 2:3:3:2 basis, respectively, how will the $10,000 be divided? b. The $10,000 cash that exceeds the partnership liabilities is to be disbursed immediately. If profits and losses are allocated on a 2:2:3:3 basis, respectively, how will the $10,000 be divided? c. The building is immediately sold for $140,000 to give total cash of $200,000. The liabilities are then paid, leaving a cash balance of $150,000. This cash is to be distributed to the partners. How much of this money will each partner receive if profits and losses are allocated to Adams, Baker, Carvil, and Dobbs on a 1:3:3:3 basis, respectively? (Do not round intermediate calculations.) d. Assume that profits and losses are allocated to Adams, Baker, Carvil, and Dobbs on a 1:3:4:2 basis, respectively. How much money must the firm receive from selling the land and building to ensure that Carvil receives a portion? (Do not round intermediate calculations.) a. Adams Baker Carvil Dobbs b. Adams Baker Carvil Dobbs c. Adams Baker Carvil Dobbs d. Minimum amount of sale value
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