A part from running Min Armin Wasteage Minnie has also been involved in a partnershipwith her cousin Max. While the business has been running quite well both Max andMinnie have decided it is time to move on. The latest balance sheet for the business isoutlined below.AssetsLiabilitiesAccounts PayableAccrued Expenses70,00662,00030,60030,44059,56079,200192,00019,7389,3002,800CashAccounts ReceivableInventoryOffice EquipmentMotor VehiclesWarehouseLand12,100EquityМаx319,444212,000MinnieGoodwill531,444543,544543,544Max and Minnie have been offered $450,000 for all the non-cash assets of the businessand they have decided to accept the offer. As Max has spent more time with the businessprofit and losses are shared 60% to Max and 40% to Minnie.Required1. Show the journal entries required to dissolve the partnership.

Dissolution of Partnership While doing the process of dissolution of partnership first priority to…

Land 192,000 Minnie 212,000 Goodwill 19,738 531,444 543,544 543,544 Max and Minnie have been offered $450,000 for all the non-cash assets of the business and they have decided to accept the offer. As Max has spent more time with the business profit and losses are shared 60% to Max and 40% to Minnie. Required 1. Show the journal entries required to dissolve the partnership.

Land 192,000 Minnie 212,000 Goodwill 19,738 531,444 543,544 543,544 Max and Minnie have been offered $450,000 for all the non-cash assets of the business and they have decided to accept the offer. As Max has spent more time with the business profit and losses are shared 60% to Max and 40% to Minnie. Required 1. Show the journal entries required to dissolve the 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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! Required information [The following information applies to the questions displayed below.] Elaine pays $40,000 cash for Martha's one-third interest in the Lakewood Partnership. Just prior to the sale, Martha's basis in Lakewood is $140,000. Lakewood reports the following balance sheet: Assets Cash Land Totals Liabilities and capital Capital Totals -Mary -Martha -Margaret Тах Basis FMV $ 50,000 $ 50,000 370,000 70,000 $420,000 $120,000 $140,000 140,000 140,000 $420,000 Assume the land had been purchased several years ago and the partnership does not have a §754 election in place. a-1. What is the amount of Martha's recognized gain or loss on the sale? Amount of recognized Gain or loss 0
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Subject- accounting
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