The partnership of Larson, Norris, Spencer, and Harrison has decided to terminate operations and liquidate all business property. During this process, the partners expect to incur $8,000 in liquidation expenses. All partners are currently solvent.The balance sheet reported by this partnership at the time that the liquidation commenced follows. The percentages indicate the allocation of profits and losses to each of the four partners. Cash . . . . . . . . . . . . . . . . . . . $ 28,250 Liabilities . . . . . . . . . . . . . . . $ 47,000Accounts receivable . . . . . 44,000 Larson, capital (20%) . . . . . . . 15,000Inventory . . . . . . . . . . . . . . . 39,000 Norris, capital (30%) . . . . . . 60,000Land and buildings . . . . . . 23,000 Spencer, capital (20%) . . . 75,000Equipment . . . . . . . . . . . . . . 104,000 Harrison, capital (30%) . . . . 41,250 Based on the information provided, prepare a predistribution plan for liquidating this partnership.
The partnership of Larson, Norris, Spencer, and Harrison has decided to terminate operations and liquidate all business property. During this process, the partners expect to incur $8,000 in liquidation expenses. All partners are currently solvent.
The
The percentages indicate the allocation of
Cash . . . . . . . . . . . . . . . . . . . $ 28,250 Liabilities . . . . . . . . . . . . . . . $ 47,000
Accounts receivable . . . . . 44,000 Larson, capital (20%) . . . . . . . 15,000
Inventory . . . . . . . . . . . . . . . 39,000 Norris, capital (30%) . . . . . . 60,000
Land and buildings . . . . . . 23,000 Spencer, capital (20%) . . . 75,000
Equipment . . . . . . . . . . . . . . 104,000 Harrison, capital (30%) . . . . 41,250
Based on the information provided, prepare a predistribution plan for liquidating this partnership.
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