In: Accounting
Required information
SB Bill, Page, Larry, and Scott have decided...
Bill, Page, Larry, and Scott have decided to terminate their
partnership. The partnership's balance sheet at the time they
decide to wind up is as follows:
Cash | $ | 100,000 | Accounts payable | $ | 100,000 | |
Noncash Assets | 300,000 | Bill, Capital | 25,000 | |||
Page, Capital | 110,000 | |||||
Larry, Capital | 100,000 | |||||
Scott, Capital | 65,000 | |||||
$ | 400,000 | Total | $ | 400,000 | ||
During the winding up of the partnership, the other assets are sold
for $150,000 and the accounts payable are paid. Page and Larry are
personally solvent, but Bill and Scott are personally insolvent.
The partners share profits and losses in the ratio of 3:2:1:4.
TB MC Qu. 16-11 Based on the preceding information, what...
Based on the preceding information, what amounts will be
distributed to Page and Larry upon liquidation of the
partnership?
Page | Larry | ||||||
A) | $ | 0 | $ | 0 | |||
B) | $ | 80,000 | $ | 85,000 | |||
C) | $ | 74,286 | $ | 82,143 | |||
D) | $ | 70,000 | $ | 80,000 | |||
Please explain using math steps how to get the bolded answers thank you so much