30Required informationSiero, Lani, and Cecilia are partners in an equipment leasing business that has not been able to generate the type ofrevenue expected by the portners. They share profits and losses in a ratio of 5:3:2, respectively. They have decided toliquidate the business and have sold all the essets except for one plece of heavy machinery. All the partners arepersonally insolvent. The machinery has o book value of $90,000, and the partners have capital balances as follows0t32:29Siera, CapitalLani, CapitalCecilia, Capital$40,000$ 20,000$30,000Each 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?SieraLaniCecilia$25,000$11,00e$10,000$20, 000$24,000$20, 000A.B.$30,800$48,000$55,000$30, 000$36, 000C.D.$29, 000

If all the partners become insolvent, realization account is prepared in usual course. And loss on…

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

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

Section: Chapter Questions

Problem 1Q

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