Reference no: EM133500711

Question 1: What is Partner A's Capital balance after selling the assets and settling the liabilities

Question 2: How much personal assets can Partner B contribute toward settling her deficit?

Question 3: How much does Partner C absorb from the remaining deficit of Partner B (if any)?(Enter a positive number or 0 for none)

Question 4: How much cash does Partner A receive from the partnership at the end of the liquidation (if any)? (Enter a positive number or 0 for none)

Question 5: Parent Co. owns 80% of Subsidiary Co. At the beginning of 2022, Subsidiary Co.'s beginning inventory included $10,000 merchandise purchased from Parent Co. in the prior year. Parent Co.'s gross profit on sales is 25%. What elimination entry should be prepared at the end of 2022 in the consolidation worksheet?

Inventory   

COGS       

RE-Parent          

RE-Subsidiary    

Question 6: Silver Moon Company owns 70 percent of the common stock of Bright Star Company.At the beginning of 2018, Bright Star issued $100,000 of 8%, 10-year bonds at face value. At the beginning of 2021, Silver Moon purchased 80 percent of these bonds for $87,000. What is the interest adjustment that will be made in Bright Star's income distribution schedule at the end of 2021? (Enter a positive number for additions (i.e., credits) to net income or a negative number for deductions (i.e., debits) from net income).

Question 7: At the end of 2022, Adam Co. had a fair value of $2,700,000. On that date, assets had a book value of $3,000,000 (including $200,000 goodwill) and a fair value of $2,900,000 (excluding goodwill). Liabilities had a book and a fair value of $1,100,000. How much goodwill impairment loss should the company recognize at the end of 2022 (if any)? (Enter a positive number for the impairment loss, or enter 0 for none).

Question 8: Assume that ABC partnership is being liquidated using an installment liquidation approach. Partners' capital balances were $200,000 for A, $170,000 for B, and $60,000 for C. Further, the three partners share profits and losses 3:2:3 for A, B, and C respectively. Which of the three partners is most likely to receive a cash distribution first, as determined by the schedule of safe payments?