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RST partnership begins the liquidation process with the following balance sheet and profit and loss percentages     Cash                                  280,000                Liabilities              200,000 Noncash Assets                300,000                R Capital (40%)    100,000                                                                        S Capital (30%)    150,000                                                                        T Capital (30%)    130,000 Liquidation expenses are estimated at $50,000. Assume any deficit balance in a partner’s capital account will not be repaid. What is the safe payment that can be made to partner T.

RST partnership begins the liquidation process with the following balance sheet and profit and loss percentages     Cash                                  280,000                Liabilities              200,000 Noncash Assets                300,000                R Capital (40%)    100,000                                                                        S Capital (30%)    150,000                                                                        T Capital (30%)    130,000 Liquidation expenses are estimated at $50,000. Assume any deficit balance in a partner’s capital account will not be repaid. What is the safe payment that can be made to partner T.

FINANCIAL ACCOUNTING
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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  1. RST partnership begins the liquidation process with the following balance sheet and profit and loss percentages

 

 

Cash                                  280,000                Liabilities              200,000

Noncash Assets                300,000                R Capital (40%)    100,000

                                                                       S Capital (30%)    150,000

                                                                       T Capital (30%)    130,000

Liquidation expenses are estimated at $50,000. Assume any deficit balance in a partner’s capital account will not be repaid.

  1. What is the safe payment that can be made to partner T.

answer please

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