The partners in ABC
SWFT Essntl Tax Individ/Bus Entities 2020
23rd Edition
ISBN:9780357391266
Author:Nellen
Publisher:Nellen
Chapter18: Comparative Forms Of Doing Business
Section: Chapter Questions
Problem 38P
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Question
The partners in ABC partnership have decided to liquidate the partnership. Its
Cash | $11,000 | Liabilities | $6,600 | |
Inventory | 5,500 | A, capital | 7,700 | |
Equipment | 27,500 | B, capital | 13,200 | |
C, capital | 16,500 | |||
TOTAL | $44,000 | TOTAL | $44,000 |
The partners share income in a 2:3:5 ratio.
Now assume none of the inventory or equipment is sold, but the partners want to distribute $2,750 in cash to the partners. How much cash is distributed to partner B?
Select one:
a. $8,910
b. $2,310
c. $2,200
d. $0
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