Reference no: EM131623890
Question - In 2001, three dentists-Ben Rogers, Judy Wilkinson, and Henry Walker-formed a partnership to open a practice in Toledo, Ohio. The partnership's primary purpose was to reduce expenses by sharing building and equipment costs, supplies, and the services of a clerical staff. Each contributed $70,000 in cash and, with the help of a bank loan, constructed a building and acquired furniture, fixtures, and equipment. Because the partners maintained their own separate clients, annual net income has been allocated as follows: Each partner receives the specific amount of revenues that he or she generated during the period less one-third of all expenses. From the beginning, the partners did not anticipate expansion of the practice; consequently, they could withdraw cash each year up to 90 percent of their share of income for the period.
The partnership had been profitable for a number of years. Over the years, Rogers has used much of his income to speculate in real estate in the Toledo area. By 2015 he was spending less time with the dental practice so that he could concentrate on his investments. Unfortunately, a number of these deals proved to be bad decisions and he incurred significant losses. On November 8, 2015, while Rogers was out of town, his personal creditors filed a $97,000 claim against the partnership assets. Unbeknownst to Wilkinson and Walker, Rogers had become insolvent.
Wilkinson and Walker hurriedly met to discuss the problem because Rogers could not be located. Rogers's capital account was currently at $105,000, but the partnership had only $27,000 in cash and liquid assets. The partners knew that Rogers's equipment had been used for a number of years and could be sold for relatively little. In contrast, the building had appreciated in value, and the claim could be satisfied by selling the property. However, this action would have a tremendously adverse impact on the dental practices of the remaining two partners.
What alternatives are available to Wilkinson and Walker, and what are the advantages and disadvantages of each?
Hoyle. Fundamentals of Advanced Accounting (Page 478). McGraw-Hill Education. Kindle Edition.
Discuss what are the counterpoints in an essay
: What possible positions/arguments are there, What position resonates with you, Which position do you believe is correct, What are your main points
|
Explain why you remembered any of them
: How many do you think there are? Explain why you remembered any of them. Next time you are on that route, note how many billboards there actually are.
|
Develop a customer service training implementation plan
: Develop a customer service training implementation plan and determine the method of training (i.e., presentation, discussion, case study, discovery.
|
Differentiate among the given types of investments
: Differentiate among the following types of investments, and cite an example of each.
|
What alternatives are available to wilkinson and walker
: What alternatives are available to Wilkinson and Walker, and what are the advantages and disadvantages of each
|
Determine the depreciation for each of the first two years
: Determine the depreciation for each of the first two years by the straight-line method.
|
Describe the key features among the deposit accounts
: Briefly describe the key features and differences among the following deposit accounts.
|
Compare and contrast the given short-term investments
: Define, compare, and contrast the following short-term investments.
|
Research career options within the accounting field
: Use the Internet database to research career options within the accounting field and accounting job postings in your local area
|