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
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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 |
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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% |
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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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