The noncash assets were then sold for 120000 and the

Reference no: EM13484946

The H, I, and J partnership was about to enter liquidation with the following account balances:
Cash:$90,000. Noncash asset:$300,000. Liabilities:$60,000.

H's capital:$80,000. I's capital:$110,000. J's Capital:$140,000.
Estimated expenses of liquidation were $5,000. H, I, and J shared profits and losses in a ratio of 2:4:4. Before liquidating any assets, the partners determined the amount of cash for safe payments.

A. How should the amount of safe cash payments be distributed?

B. The noncash assets were then sold for $120,000, and the liquidation expenses of $5,000 were paid. How much of the $120,000 would be distributed to the partners? (Hint: Either a predistribution plan or a schedule of safe payments would be appropriate for solving this item.)

Reference no: EM13484946

Questions Cloud

Suppose the during the first month of the year 3750 : stillwater designs rebuilds defective units of its s12l7 kicker speaker model. during the year stillwater rebuilt 7500

Stephanie is the two-year old daughter of jason and kelly : stephanie is the two-year old daughter of jason and kelly larkspur. stephanie starred in several television commercials

Mike conway is a lawyer who requires that his clients pay : mike conway is a lawyer who requires that his clients pay him in advance of legal services rendered. mike routinely

What would be the minimum amount for which the noncash : the following account balances were available for the perry quincy and renquist partnership just before it entered

The noncash assets were then sold for 120000 and the : the h i and j partnership was about to enter liquidation with the following account balancescash90000. noncash

Ab and c are partners with capital balances of 50000 30000 : ab and c are partners with capital balances of 50000 30000 and 20000 and who share in the profit and loss of the abc

Stephen company produces a single product last year the : stephen company produces a single product. last year the company had 20000 units in its ending inventory. during the

Ecker company purchased a new machine on may 1 2002 for : ecker company purchased a new machine on may 1 2002 for 176000. at the time of acquisition the machine was estimated to

Maud a calendar year taxpayer is the owner of a sole : maud a calendar year taxpayer is the owner of a sole proprietorship that uses the cash method. on february 1 2013 she

User Account

All Pages