Starke believes the partnership will receive at least $80,000 for the noncash assets. Assuming Starke is correct, prepare a schedule showing the amount she will receive if the noncash assets are liquidated for $80,000. For the Starke, Lannister, & Targaryen partnership, compute the total amount of cash available for safe payment before disposal of any noncash assets.
After 25 years of operations, the Starke, Lannister, and Targaryen partnership has decided to liquidate. At that time, 1/1/20x2, the partnership
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Starke, Lannister, and Targaryen, Partners |
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Balance Sheet |
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as of 12/31/20x1 |
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Assets |
Liabilities and Partners’ Capital |
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|
Cash |
$80,000 |
Liabilities |
$47,000 |
|
Noncash assets |
205,000 |
Starke, Capital |
138,000 |
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Lannister, Capital |
119,500 |
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|
|
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Targaryen, Capital |
(19,500) |
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Total assets |
$285,000 |
Total Liabilities and Capital |
$285,000 |
In accordance with the Articles of Partnership, the partners agreed to share
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Starke, Capital |
30% |
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Lannister, Capital |
40% |
|
Targaryen, Capital |
30% |
The partnership estimates liquidation expenses of $10,000.
Required
- Starke believes the partnership will receive at least $80,000 for the noncash assets. Assuming Starke is correct, prepare a schedule showing the amount she will receive if the noncash assets are liquidated for $80,000.
- For the Starke, Lannister, & Targaryen partnership, compute the total amount of cash available for safe payment before disposal of any noncash assets.
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