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Olga contributed $10,000 in exchange for a 50% capital interest in OP Partnership. Piotr also contributed $10,000 in exchange for a 50% capital interest in OP Partnership. The partnership agreement states that profits will be allocated 75% to Piotr and 25% to Olga and losses will be allocated 25% to Piotr and 75% to Olga. During the first year, OP Partnership had a loss of $15,000. If OP Partnership were to liquidate after the end of the first year when it has total assets of $5,000, which of the following is/are accurate? Select all that apply. The partnership would split any remaining assets equally among the two partners, with each partner receiving 50% of the assets ($2,500) Piotr would receive 75% of the remaining $5,000 ($3,750) Even though the partnership only has total assets of $5,000, Piotr would need to receive $6,250 upon liquidation of the partnership Olga would receive 25% of the remaining $5,000 ($1,250) Olga would need to contribute $1,250 to the partnership

Olga contributed $10,000 in exchange for a 50% capital interest in OP Partnership. Piotr also contributed $10,000 in exchange for a 50% capital interest in OP Partnership. The partnership agreement states that profits will be allocated 75% to Piotr and 25% to Olga and losses will be allocated 25% to Piotr and 75% to Olga. During the first year, OP Partnership had a loss of $15,000. If OP Partnership were to liquidate after the end of the first year when it has total assets of $5,000, which of the following is/are accurate? Select all that apply. The partnership would split any remaining assets equally among the two partners, with each partner receiving 50% of the assets ($2,500) Piotr would receive 75% of the remaining $5,000 ($3,750) Even though the partnership only has total assets of $5,000, Piotr would need to receive $6,250 upon liquidation of the partnership Olga would receive 25% of the remaining $5,000 ($1,250) Olga would need to contribute $1,250 to the partnership

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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If OP Partnership were to liquidate after the end of the first year when it has total assets of $5,000, which of the following is/are accurate? Select all that apply.

 
Olga contributed $10,000 in exchange for a 50% capital interest in OP Partnership. Piotr also contributed $10,000 in exchange for a 50% capital interest in OP Partnership. The partnership agreement states that profits will be allocated 75% to Piotr and 25% to Olga and losses will be allocated 25% to Piotr and 75% to Olga. During the first year, OP Partnership had a loss of $15,000. If OP Partnership were to liquidate after the end of the first year when it has total assets of $5,000, which of the following is/are accurate? Select all that apply. The partnership would split any remaining assets equally among the two partners, with each partner receiving 50% of the assets ($2,500) Piotr would receive 75% of the remaining $5,000 ($3,750) Even though the partnership only has total assets of $5,000, Piotr would need to receive $6,250 upon liquidation of the partnership Olga would receive 25% of the remaining $5,000 ($1,250) Olga would need to contribute $1,250 to the partnership
Transcribed Image Text:Olga contributed $10,000 in exchange for a 50% capital interest in OP Partnership. Piotr also contributed $10,000 in exchange for a 50% capital interest in OP Partnership. The partnership agreement states that profits will be allocated 75% to Piotr and 25% to Olga and losses will be allocated 25% to Piotr and 75% to Olga. During the first year, OP Partnership had a loss of $15,000. If OP Partnership were to liquidate after the end of the first year when it has total assets of $5,000, which of the following is/are accurate? Select all that apply. The partnership would split any remaining assets equally among the two partners, with each partner receiving 50% of the assets ($2,500) Piotr would receive 75% of the remaining $5,000 ($3,750) Even though the partnership only has total assets of $5,000, Piotr would need to receive $6,250 upon liquidation of the partnership Olga would receive 25% of the remaining $5,000 ($1,250) Olga would need to contribute $1,250 to the partnership
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