In the liquidation of a partnership, thegains and losses from assets sold areO divided equally among the partners.divided among the partners in the statedincome ratio.divided among the partners in proportion totheir capital equity interests.O ignored.

Solution: In the liquidation of partnership, the gain and losses from assets sold "Divided amount…

Answered: In the liquidation of a partnership,…

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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Write a Sample Format of Statement of Liquidation (Lump Sump) Other Instruction (Assumptions) 1. Values should be written as XXX if positive and (XXX) if negative 2. 7 Partners [Jk, V, RM, Jimin, Hobi, Jin and Suga] 3. There is a gain in the realization of assets 4. There is liquidation expense. 5. V has receivables from partnership. 6. Jin and Suga have payables to the partnership
In liquidation of LLP, for allocation of realization losses to partners, the journal entry includes: a. Debit each partner’s capital with his/her share in gains based final capital balances. b. Debit each partner’s capital with his/her share in gains based on income sharing ratios. c. Credit each partner’s capital with his/her share in gains based final capital balances. d. Credit each partner’s capital with his/her share in gains based on income sharing ratios.
When a partner withdraws from a partnership, why is the final distribution often based on the appraised value of the business rather than on the book value of the capital account balance?
What is the answer to this question?
Which of the following is added to the Partner's capital account in the Statement of Changes in Partner's Equity? Temporary withdrawal of investment by the Partner Share in the net income of the Partnership Share in the net loss of the Partnership Partners' drawing during the year
Net income for a partnership has to be allocated based on stated ratios. Question 2 options: True False
Tax Drill - Effect of Partnership Operations on Basis Indicate whether the following items "Increase" or "Decrease" a partner's basis in the partnership. a. A partner's proportionate share of nondeductible expenses. b. A partner's proportionate share of any increase in partnership liabilities. c. A partner's proportionate share of partnership income. d. A partner's proportionate share of any reduction in partnership liabilities.
How do loans from partners affect the distribution of assets in a partnership liquidation?
How does a newly formed partnership handle the contribution of previously depreciated assets?
In the liquidating process, any uncollectible deficiency becomes a loss to the partnership and is divided among the remaining partners' capital balances based on their income-sharing ratio. True /false
When a partner invests noncash assets in a partnership, the assets should be recorded at their O book value. carrying value. O fair market value. O original cost.
In the liquidating process, any uncollected cash becomes a loss to the partnership and is divided among the remaining partners' capital balances based on their income-sharing ratio. Group of answer choices True False

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In the liquidation of a partnership, the gains and losses from assets sold are O divided equally among the partners. divided among the partners in the stated income ratio. divided among the partners in proportion to their capital equity interests. O ignored.