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The Keaton, Lewis, and Meador partnership had the following balance sheet just before entering liquidation: Cash $ 100,000 Noncash assets 210,000  Total $ 310,000  Liabilities 40,000 Keaton, capital 90,000 lewis, capital 60,000 Meador, capital 120,000 total 310,000 Keaton, Lewis, and Meador share profits and losses in a ratio of 2:4:4.   Assuming noncash assets were sold for $60,000 and liquidation expenses in the amount of $10,000 were incurred, how much will each partner receive in the liquidation?      Keaton    Lewis    Meador A) $40,000 $26,667 $ 53,333 B) $24,000 $48,000 $ 48,000 C) $56,667 $ 0         $ 53,333 D) $ 0    $ 0           $120,000 E) $36,000 $12,000 $ 72,000

The Keaton, Lewis, and Meador partnership had the following balance sheet just before entering liquidation: Cash $ 100,000 Noncash assets 210,000  Total $ 310,000  Liabilities 40,000 Keaton, capital 90,000 lewis, capital 60,000 Meador, capital 120,000 total 310,000 Keaton, Lewis, and Meador share profits and losses in a ratio of 2:4:4.   Assuming noncash assets were sold for $60,000 and liquidation expenses in the amount of $10,000 were incurred, how much will each partner receive in the liquidation?      Keaton    Lewis    Meador A) $40,000 $26,667 $ 53,333 B) $24,000 $48,000 $ 48,000 C) $56,667 $ 0         $ 53,333 D) $ 0    $ 0           $120,000 E) $36,000 $12,000 $ 72,000

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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The Keaton, Lewis, and Meador partnership had the following balance sheet just before entering liquidation:
Cash $ 100,000

Noncash assets 210,000 
Total $ 310,000 

Liabilities 40,000

Keaton, capital 90,000

lewis, capital 60,000

Meador, capital 120,000

total 310,000

Keaton, Lewis, and Meador share profits and losses in a ratio of
2:4:4.

 

Assuming noncash assets were sold for $60,000 and liquidation expenses in
the amount of $10,000 were incurred, how much will each partner receive in the liquidation?


     Keaton    Lewis    Meador
A) $40,000 $26,667 $ 53,333
B) $24,000 $48,000 $ 48,000
C) $56,667 $ 0         $ 53,333
D) $ 0    $ 0           $120,000
E) $36,000 $12,000 $ 72,000

 

 

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