The following condensed balance sheet is for the partnership of Miller, Tyson, and Watson, who share profits and losses in the ratio of 6:2:2, respectively:                     Cash $ 50,000     Liabilities $ 42,000   Other assets   150,000     Miller, capital   69,000             Tyson, capital   69,000             Watson, capital   20,000   Total assets $ 200,000     Total liabilities and capital $ 200,000       b. For how much money must the other assets be sold so that each partner receives some amount of cash in a liquidation?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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The following condensed balance sheet is for the partnership of Miller, Tyson, and Watson, who share profits and losses in the ratio of 6:2:2, respectively:

 

                 
Cash $ 50,000     Liabilities $ 42,000  
Other assets   150,000     Miller, capital   69,000  
          Tyson, capital   69,000  
          Watson, capital   20,000  
Total assets $ 200,000     Total liabilities and capital $ 200,000  
 

 

b. For how much money must the other assets be sold so that each partner receives some amount of cash in a liquidation?

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