Required: Prepare a statement of partnership liquidation to determine the amount of cash that Bell would receive from the sale of partnership assets. Note: Amounts to be deducted should be entered with a minus sign. BELL, HARDY, DENNARD, AND SUDDATH PARTNERSHIP Statement of Partnership Liquidation (Hypothetical) Cash Assets Liabilities Bell, Capital 40% Hardy, Capital 30% Dennard, Capital 20% Suddath, Capital 10% Balances $ 106,000 $ 91,000 $ 12,000 $ 102,000 Sale of assets Subtotal $ 106,000 91,000 12,000 102,000 0 0 0 Pay liabilities Subtotal $ 106,000 $ 91,000 $ 12,000 $ 102,000 $ 0 $ 0 $ 0 Allocate deficit Subtotal $ 106,000 $ 91,000 $ 12,000 $ 102,000 $ 0 $ 0 $ 0 Distribute cash Ending balances $ 106,000 $ 91,000 $ 12,000 $ 102,000 $ 0 $ 0 $ 0
Required: Prepare a statement of partnership liquidation to determine the amount of cash that Bell would receive from the sale of partnership assets. Note: Amounts to be deducted should be entered with a minus sign. BELL, HARDY, DENNARD, AND SUDDATH PARTNERSHIP Statement of Partnership Liquidation (Hypothetical) Cash Assets Liabilities Bell, Capital 40% Hardy, Capital 30% Dennard, Capital 20% Suddath, Capital 10% Balances $ 106,000 $ 91,000 $ 12,000 $ 102,000 Sale of assets Subtotal $ 106,000 91,000 12,000 102,000 0 0 0 Pay liabilities Subtotal $ 106,000 $ 91,000 $ 12,000 $ 102,000 $ 0 $ 0 $ 0 Allocate deficit Subtotal $ 106,000 $ 91,000 $ 12,000 $ 102,000 $ 0 $ 0 $ 0 Distribute cash Ending balances $ 106,000 $ 91,000 $ 12,000 $ 102,000 $ 0 $ 0 $ 0
SWFT Essntl Tax Individ/Bus Entities 2020
23rd Edition
ISBN:9780357391266
Author:Nellen
Publisher:Nellen
Chapter14: Partnerships And Limited Liability Entities
Section: Chapter Questions
Problem 2BD
Related questions
Question
A partnership is considering possible liquidation because one of the partners (Bell) is personally insolvent.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Recommended textbooks for you