The partnership of Hendrick, Mitchum, and Redding has the following account balances: Cash . . . . . . . . . . . . . . . . . . . $ 50,000 Liabilities . . . . . . . . . . . . .. . . $ 30,000Noncash assets . . . . . . . . . 135,000 Hendrick, capital . . . . . . . . . . 100,000 Mitchum, capital . . . . . . . . . . . 70,000 Redding, capital . . . . . . . . . . . .(15,000) This partnership is being liquidated. Hendrick and Mitchum are each entitled to 40 percent of all profits and losses with the remaining 20 percent going to Redding.a. What is the maximum amount that Redding might have to contribute to this partnership because of the deficit capital balance?b. How should the $20,000 cash that is presently available in excess of liabilities be distributed?c. If the noncash assets are sold for a total of $50,000, what is the minimum amount of cash that Hendrick could receive?
The partnership of Hendrick, Mitchum, and Redding has the following account balances:
Cash . . . . . . . . . . . . . . . . . . . $ 50,000 Liabilities . . . . . . . . . . . . .. . . $ 30,000
Noncash assets . . . . . . . . . 135,000 Hendrick, capital . . . . . . . . . . 100,000
Mitchum, capital . . . . . . . . . . . 70,000
Redding, capital . . . . . . . . . . . .(15,000)
This partnership is being liquidated. Hendrick and Mitchum are each entitled to 40 percent of all
a. What is the maximum amount that Redding might have to contribute to this partnership because of the deficit capital balance?
b. How should the $20,000 cash that is presently available in excess of liabilities be distributed?
c. If the noncash assets are sold for a total of $50,000, what is the minimum amount of cash that Hendrick could receive?
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