Required information Problem 15-33 (Algo) (LO 15-2, 15-7) [The following information applies to the questions displayed below.] The partnership of Butler, Osman, and Ward was formed several years ago as a local tax preparation firm. Two partners have reached retirement age, and the partners have decided to terminate operations and liquidate the business. Liquidation expenses of $48,000 are expected. The partnership balance sheet at the start of liquidation is as follows: Cash Accounts receivable. $ 44,000 74,000 Liabilities Butler, loan $ 184,000 44,000 Office equipment (net) 64,000 Building (net) Land Total assets 180,000 Butler, capital (25%) Osman, capital (25%) 120,000 44,000 170,000 $532,000 Ward, capital (50%) 140,000 Total liabilities and capital $532,000 Problem 15-33 Part A Prepare a predistribution plan for this partnership. Answer is not complete. Butler, Loan and Capital Osman, Ward, Capital Capital Beginning balances S 164,000 $44,000 140,000 Assumed loss of Schedule 1 (44,000) (44,000) Step one balances S S 120,000 $ 0 140,000 Assumed loss of Schedule 2 Step two balances S S 120,000 $ 0 140,000
Required information Problem 15-33 (Algo) (LO 15-2, 15-7) [The following information applies to the questions displayed below.] The partnership of Butler, Osman, and Ward was formed several years ago as a local tax preparation firm. Two partners have reached retirement age, and the partners have decided to terminate operations and liquidate the business. Liquidation expenses of $48,000 are expected. The partnership balance sheet at the start of liquidation is as follows: Cash Accounts receivable. $ 44,000 74,000 Liabilities Butler, loan $ 184,000 44,000 Office equipment (net) 64,000 Building (net) Land Total assets 180,000 Butler, capital (25%) Osman, capital (25%) 120,000 44,000 170,000 $532,000 Ward, capital (50%) 140,000 Total liabilities and capital $532,000 Problem 15-33 Part A Prepare a predistribution plan for this partnership. Answer is not complete. Butler, Loan and Capital Osman, Ward, Capital Capital Beginning balances S 164,000 $44,000 140,000 Assumed loss of Schedule 1 (44,000) (44,000) Step one balances S S 120,000 $ 0 140,000 Assumed loss of Schedule 2 Step two balances S S 120,000 $ 0 140,000
Chapter10: Partnerships: Formation, Operation, And Basis
Section: Chapter Questions
Problem 39P
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![Required information
Problem 15-33 (Algo) (LO 15-2, 15-7)
[The following information applies to the questions displayed below.]
The partnership of Butler, Osman, and Ward was formed several years ago as a local tax preparation firm.
Two partners have reached retirement age, and the partners have decided to terminate operations and
liquidate the business. Liquidation expenses of $48,000 are expected. The partnership balance sheet at
the start of liquidation is as follows:
Cash
Accounts receivable.
$ 44,000
74,000
Liabilities
Butler, loan
$ 184,000
44,000
Office equipment (net)
64,000
Building (net)
Land
Total assets
180,000
Butler, capital (25%)
Osman, capital (25%)
120,000
44,000
170,000
$532,000
Ward, capital (50%)
140,000
Total liabilities and capital
$532,000
Problem 15-33 Part A
Prepare a predistribution plan for this partnership.
Answer is not complete.
Butler, Loan and
Capital
Osman, Ward,
Capital Capital
Beginning balances
S
164,000
$44,000
140,000
Assumed loss of Schedule
1
(44,000)
(44,000)
Step one balances
S
S
120,000
$
0
140,000
Assumed loss of Schedule
2
Step two balances
S
S
120,000
$
0
140,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F083ab2a4-4a41-4458-a213-dd9ba7361304%2F49605962-9265-490d-ad61-09f1ccd94541%2F6ruo9w_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Required information
Problem 15-33 (Algo) (LO 15-2, 15-7)
[The following information applies to the questions displayed below.]
The partnership of Butler, Osman, and Ward was formed several years ago as a local tax preparation firm.
Two partners have reached retirement age, and the partners have decided to terminate operations and
liquidate the business. Liquidation expenses of $48,000 are expected. The partnership balance sheet at
the start of liquidation is as follows:
Cash
Accounts receivable.
$ 44,000
74,000
Liabilities
Butler, loan
$ 184,000
44,000
Office equipment (net)
64,000
Building (net)
Land
Total assets
180,000
Butler, capital (25%)
Osman, capital (25%)
120,000
44,000
170,000
$532,000
Ward, capital (50%)
140,000
Total liabilities and capital
$532,000
Problem 15-33 Part A
Prepare a predistribution plan for this partnership.
Answer is not complete.
Butler, Loan and
Capital
Osman, Ward,
Capital Capital
Beginning balances
S
164,000
$44,000
140,000
Assumed loss of Schedule
1
(44,000)
(44,000)
Step one balances
S
S
120,000
$
0
140,000
Assumed loss of Schedule
2
Step two balances
S
S
120,000
$
0
140,000
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