Homework Help is Here – Start Your Trial Now!
Business
Accounting
The partnership of Kumar, Correa, Getz, and Pham currently holds the following assets: Cash Land Building Kumar, Capital Correa, Capital Getz, Capital Pham, Capital Balances $10,000 35,000 50,000 25,000 28,000 20,000 22,000 Profit and Loss Ratios 30% 30% 20% 20% The partnership has no liabilities and anticipates that expenses required to liquidate their partnership will amount to 5,000.

The partnership of Kumar, Correa, Getz, and Pham currently holds the following assets: Cash Land Building Kumar, Capital Correa, Capital Getz, Capital Pham, Capital Balances $10,000 35,000 50,000 25,000 28,000 20,000 22,000 Profit and Loss Ratios 30% 30% 20% 20% The partnership has no liabilities and anticipates that expenses required to liquidate their partnership will amount to 5,000.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question

nb

The partnership of Kumar, Correa, Getz, and Pham currently holds the following assets: Cash Land Building Kumar, Capital Correa, Capital Getz, Capital Pham, Capital Balances Reported balances Maximum losses on land and building Estimated liquidation expenses $10,000 35,000 50,000 25,000 28,000 20,000 22,000 Potential balances Potential loss from Kumar Safe payments The partnership has no liabilities and anticipates that expenses required to liquidate their partnership will amount to 5,000. Partnership amount 5,000 Required: Note: Use the cells A2 to C11 from the above information to complete this question. If a preliminary distribution of cash is to be made, what is the amount of safe payment that can be made to each partner? Profit and Loss Ratios Kumar $25,000 25,500 1,500 30% 30% 20% 20% ($2,000) 2,000 $0 Correa $28,000 25,500 1,500 $1,000 857 $143 Getz $20,000 17,000 1,000 $2,000 571 $1,429 Pham $22,000 17,000 1,000 $4,000 571 $3,429
Transcribed Image Text:The partnership of Kumar, Correa, Getz, and Pham currently holds the following assets: Cash Land Building Kumar, Capital Correa, Capital Getz, Capital Pham, Capital Balances Reported balances Maximum losses on land and building Estimated liquidation expenses $10,000 35,000 50,000 25,000 28,000 20,000 22,000 Potential balances Potential loss from Kumar Safe payments The partnership has no liabilities and anticipates that expenses required to liquidate their partnership will amount to 5,000. Partnership amount 5,000 Required: Note: Use the cells A2 to C11 from the above information to complete this question. If a preliminary distribution of cash is to be made, what is the amount of safe payment that can be made to each partner? Profit and Loss Ratios Kumar $25,000 25,500 1,500 30% 30% 20% 20% ($2,000) 2,000 $0 Correa $28,000 25,500 1,500 $1,000 857 $143 Getz $20,000 17,000 1,000 $2,000 571 $1,429 Pham $22,000 17,000 1,000 $4,000 571 $3,429
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
S Corporations
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS