The Keaton, Lewis, and Meador partnership had the following balance sheet just before entering liquidation: Cash $10,000 Non cash assets $300,000 Liabilities $130,000 Keaton Capital $60,000 Lewis Capital $40,000 Meador Capital $80,000 . Keaton, Lewis, and Meador share profits and losses in a ratio of 2:4:4. Non-cash assets were sold for $180,000. Liquidation expenses were $10,000. Assume that Lewis was personally insolvent and could not contribute any assets to the partnership, while Keaton and Meador were both solvent. What amount of cash would Keaton have received from the distribution of partnership assets?
B. The Keaton, Lewis, and Meador
Cash $10,000
Non cash assets $300,000
Liabilities $130,000
Keaton Capital $60,000
Lewis Capital $40,000
Meador Capital $80,000
.
Keaton, Lewis, and Meador share
What amount of cash would Keaton have received from the distribution of partnership assets?
The term liquidation in finance and economics is the process of bringing a business to an end and distributing its assets to claimants.
An insolvent partner means that the partner cannot contribute anymore and the profit or losses should be borne by other solvent partners
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