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Question - 2017 January 1 - The partners decide to liquidate the partnership. They have the following balances:
Cash $31,917
Accounts Receivable $2 500
Equipment $ 110 000
Accumulated Depreciation $ 25 000
Accounts Payable $ 4 417
The partners were able to collect $2 500 of the accounts receivable and sell the equipment for $72 000.
Required - Record all journal entries to dissolve the partnership.
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It is estimated that the company will earn $800,000 before interest and taxes as a result of this purchase. The company has an estimated tax rate of 30% and has 90,000 shares of common stock outstanding prior to the new financing. Determine the ..
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