Partners Ken and Macki each have a $40,000 capital balance and share income and losses in the ratio of 3:2. Cash equals $20,000, noncash assets equal $120,000, and liabilities equal $60,000. If the noncash assets are sold for $50,000, and each partner is personally insolvent, Partner Macki will eventually receive cash of O a. $10,000 Ob. $20,000 O c. $12,000 O d. $0 QUESTION 28

FINANCIAL ACCOUNTING
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Author:Libby
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Chapter1: Financial Statements And Business Decisions
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QUESTION 27
Partners Ken and Macki each have a $40,000 capital balance and share income and losses in the ratio of 3:2. Cash equals $20,000, noncash assets equal
$120,000, and liabilities equal $60,000. If the noncash assets are sold for $50,000, and each partner is personally insolvent, Partner Macki will eventually
receive cash of
Ob. $20,000
c. $12,000
Od. S0
QUESTION 28
Alpha and Beta are partners who share income in the ratio of 1:2 and have capital balances of $40,000 and $70,000, respectively, at the time they decide to
terminate the partnership. Noncash assets with a book value of $110,000 are sold for $50,000. What amount of loss on realization should be allocated to
Alpha?
O a. $20,000
O b. $50,000
c. $30,000
d. $60,000
Transcribed Image Text:QUESTION 27 Partners Ken and Macki each have a $40,000 capital balance and share income and losses in the ratio of 3:2. Cash equals $20,000, noncash assets equal $120,000, and liabilities equal $60,000. If the noncash assets are sold for $50,000, and each partner is personally insolvent, Partner Macki will eventually receive cash of Ob. $20,000 c. $12,000 Od. S0 QUESTION 28 Alpha and Beta are partners who share income in the ratio of 1:2 and have capital balances of $40,000 and $70,000, respectively, at the time they decide to terminate the partnership. Noncash assets with a book value of $110,000 are sold for $50,000. What amount of loss on realization should be allocated to Alpha? O a. $20,000 O b. $50,000 c. $30,000 d. $60,000
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