Required information Siera, Lani, and Cecilie are partners in an equipment leasing business that has not been able to generate the type of revenue expected by the partners. They share profits and losses in a ratio of 5:3:2, respectively. They have decided to liquidate the business and have sold all the assets except for one piece of heavy machinery. All the partners are personally insolvent. The machinery has a book value of $90,000, and the partners have capital balences as follows Siera, Capital Lani, Capital Cecilia, Capital $40,000 $ 20,000 Each of the following is an independent case. Refer to the information given above. What amount of cash will each partner receive as a liquidating distribution if the machinery is sold for $60,000? Siera Lani Cecilia $25,000 $30,800 $40,000 $11,e00 $24,000 $20, 000 $30,000 A. В. $18, 000 $20, 000 C. D. $55,000 $29,000 $36, 000

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Required information
Siero, Lani, and Cecilia are partners in an equipment leasing business that has not been able to generate the type of
revenue expected by the portners. They share profits and losses in a ratio of 5:3:2, respectively. They have decided to
liquidate the business and have sold all the essets except for one plece of heavy machinery. All the partners are
personally insolvent. The machinery has o book value of $90,000, and the partners have capital balances as follows
0t32:29
Siera, Capital
Lani, Capital
Cecilia, Capital
$40,000
$ 20,000
$30,000
Each of the following is an independent case.
Refer to the informotion given above. What amount of cosh will each partner receive as a liquidating distribution if the machinery is sold for
$60,000?
Siera
Lani
Cecilia
$25,000
$11,00e
$10,000
$20, 000
$24,000
$20, 000
A.
B.
$30,800
$48,000
$55,000
$30, 000
$36, 000
C.
D.
$29, 000
Transcribed Image Text:30 Required information Siero, Lani, and Cecilia are partners in an equipment leasing business that has not been able to generate the type of revenue expected by the portners. They share profits and losses in a ratio of 5:3:2, respectively. They have decided to liquidate the business and have sold all the essets except for one plece of heavy machinery. All the partners are personally insolvent. The machinery has o book value of $90,000, and the partners have capital balances as follows 0t32:29 Siera, Capital Lani, Capital Cecilia, Capital $40,000 $ 20,000 $30,000 Each of the following is an independent case. Refer to the informotion given above. What amount of cosh will each partner receive as a liquidating distribution if the machinery is sold for $60,000? Siera Lani Cecilia $25,000 $11,00e $10,000 $20, 000 $24,000 $20, 000 A. B. $30,800 $48,000 $55,000 $30, 000 $36, 000 C. D. $29, 000
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