### Liquidating PartnershipsPrior to liquidating their partnership, Cameron and Solivita had capital accounts of $44,000 and $92,000, respectively. Before liquidation, the partnership had no cash assets other than what was realized from the sale of assets. These partnership assets were sold for $166,000. The partnership had $9,000 of liabilities. Cameron and Solivita share income and losses equally.Determine the amount received by Cameron as a final distribution from liquidation of the partnership.---#### Explanation:1. **Initial Capital Accounts:** - Cameron: $44,000 - Solivita: $92,0002. **Asset Sale:** - Total from sale: $166,0003. **Liabilities:** - Total liabilities: $9,0004. **Distribution of Sale Proceeds:** - Total available after settling liabilities: $166,000 - $9,000 = $157,0005. **Distribution of Remaining Amount:** - Since Cameron and Solivita share income and losses equally, they will divide the $157,000 equally. - Each receives: $157,000 / 2 = $78,5006. **Cameron’s Final Distribution:** - Cameron receives $78,500.The exercise involves liquidating a partnership, focusing on the fair division of assets after liabilities are covered.

Add both capital accounts +liabilities - assets sold = Amount Available for distribution Amount…

Liquidating Partnerships Prior to liquidating their partnership, Cameron and Solivita had capital accounts of $44,000 and $92,000, respectively. Prior to liquidation, the partnership had no cash assets other than what was realized from the sale of assets These partnership assets were sold for $166,000. The partnership had $9.000 of liabilities. Cameron and Solivita share income and losses equally. Determine the amount received by Cameron as a final distribution from liquidation of the partnership.

Liquidating Partnerships Prior to liquidating their partnership, Cameron and Solivita had capital accounts of $44,000 and $92,000, respectively. Prior to liquidation, the partnership had no cash assets other than what was realized from the sale of assets These partnership assets were sold for $166,000. The partnership had $9.000 of liabilities. Cameron and Solivita share income and losses equally. Determine the amount received by Cameron as a final distribution from liquidation of 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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The following account balances were available for the Perry, Quincy, and Renquist partnership just before it entered liquidation: Cash $ 90,000 Liabilities $ 170,000 Noncash assets 300,000 Perry, capital 70,000 Quincy, capital 50,000 Renquist, capital 100,000 Total $ 390,000 Total $ 390,000 Included in Perry’s Capital account balance is a $20,000 partnership loan owed to Perry. Perry, Quincy, and Renquist shared profits and losses in a ratio of 2:4:4. Liquidation expenses were expected to be $15,000. All partners were insolvent. For what amount would the noncash assets need to be sold in order for Quincy to receive some cash from the liquidation? Multiple Choice A. Any amount in excess of $170,000. B. Any amount in excess of $190,000. C. Any amount in excess of $260,000. D. Any amount in excess of $280,000. E. Any amount in excess of $300,000.
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