am. 124. The partners in ABC partnership have decided to liquidate the partnership. Its balance sheetis below.CashInventoryEquipmentTOTAL$8,000 Liabilities $4,8004,000 A, capital5,60020,000 B, capital9,600C, capital12,000$32,000$32,000 TOTALThe partners share income in a 2:3:5 ratio.Now assume all the inventory is sold for $1.600, but the equipment is not sold. All cash is tobe distributed to the partners, after creditors are paid. How much cash is distributed topartner A?

It is an agreement between two or more parties to conduct the business and share the profits and…

The partners in ABC partnership have decided to liquidate the partnership. Its balance is below. Cash $8,000 Liabilities $4,800 Inventory 4,000 A, capital 5,600 Equipment 20,000 B, capital 9,600 C, capital 12,000 $32,000 TOTAL $32,000 TOTAL

The partners in ABC partnership have decided to liquidate the partnership. Its balance is below. Cash $8,000 Liabilities $4,800 Inventory 4,000 A, capital 5,600 Equipment 20,000 B, capital 9,600 C, capital 12,000 $32,000 TOTAL $32,000 TOTAL

SWFT Essntl Tax Individ/Bus Entities 2020

23rd Edition

ISBN:9780357391266

Author:Nellen

Publisher:Nellen

Chapter14: Partnerships And Limited Liability Entities

Section: Chapter Questions

Problem 2BD

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Question

am. 124.

The partners in ABC partnership have decided to liquidate the partnership. Its balance sheet
is below.
Cash
Inventory
Equipment
TOTAL
$8,000 Liabilities $4,800
4,000 A, capital
5,600
20,000 B, capital
9,600
C, capital
12,000
$32,000
$32,000 TOTAL
The partners share income in a 2:3:5 ratio.
Now assume all the inventory is sold for $1.600, but the equipment is not sold. All cash is to
be distributed to the partners, after creditors are paid. How much cash is distributed to
partner A?

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