Question
In: Accounting
A partnership has liquidated all assets but still reports the following account balances: The partners split...
A partnership has liquidated all assets but still reports the following account balances:
The partners split profits and losses as follows: Cisneros, 40 percent; Beck, 20 percent; Sadak, 10 percent; Emerson, 20 percent; and Page 10 percent.
Assuming that all partners are personally insolvent except for Sadak and Emerson, how much cash must Sadak now contribute to this partnership?
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Expert Solution
Business combination:
A business combination is the union of the small business units into one. The new combined unit is known as business combination. This is done for various purposes. A business combination generally increases the efficiency and productivity while reducing the costs.
Liquidation:
Liquidation is the process in which the company is dissolved and the profits and losses are distributed among the owners in a set method. This situation arises because of the death of the partners, insolvency etc.
B and P are both personally insolvent and have negative capital balances (after offsetting the loan from B) totaling $10,000 (B’s deficit, $4,000; P’s deficit, $6,000). Absorption by the other partners of these losses would be as follows (on a 40:10:20 basis):
C, who also is personally insolvent, now has a capital balance of ($714) that would have to be absorbed by S and E (on a 10:20 or 1/3:2/3 basis):
ekkarill92 answered 2 years agoRelated Solutions
A partnership has liquidated all assets but still reports the following account balances: Beck, loan $...
A partnership has liquidated all assets but still reports the
following account balances:
Beck, loan
$
9,000
Cisneros, capital (40%)
4,800
Beck, capital (20%)
(9,600
)
(deficit)
Sadak, capital (10%)
(10,400
)
(deficit)
Emerson, capital (20%)
15,600
Page, capital (10%)
(15,000
)
(deficit)
The partners split profits and losses as follows: Cisneros, 40
percent; Beck, 20 percent; Sadak, 10 percent; Emerson, 20 percent;
and Page 10 percent.
Assuming that all partners are personally insolvent except for
Sadak and Emerson, how...
A partnership has liquidated all assets but still reports the following account balances: Beck, loan $...
A partnership has liquidated all assets but still reports the
following account balances:
Beck, loan
$
5,500
Cisneros, capital (40%)
3,600
Beck, capital (20%)
(12,200
)
(deficit)
Sadak, capital (10%)
(8,200
)
(deficit)
Emerson, capital (20%)
15,500
Page, capital (10%)
(6,200
)
(deficit)
The partners split profits and losses as follows: Cisneros, 40
percent; Beck, 20 percent; Sadak, 10 percent; Emerson, 20 percent;
and Page 10 percent.
Assuming that all partners are personally insolvent except for
Sadak and Emerson, how...
A partnership has liquidated all assets but still reports the following account balances: Beck, loan $...
A partnership has liquidated all assets but still reports the
following account balances:
Beck, loan
$
6,000
Cisneros, capital (40%)
3,900
Beck, capital (20%)
(12,300
)
(deficit)
Sadak, capital (10%)
(8,300
)
(deficit)
Emerson, capital (20%)
15,000
Page, capital (10%)
(6,300
)
(deficit)
The partners split profits and losses as follows: Cisneros, 40
percent; Beck, 20 percent; Sadak, 10 percent; Emerson, 20 percent;
and Page 10 percent.
Assuming that all partners are personally insolvent except for
Sadak and Emerson, how...
A partnership has liquidated all assets but still reports the following account balances: Beck, loan $...
A partnership has
liquidated all assets but still reports the following account
balances:
Beck, loan
$
6,000
Cisneros,
capital (40%)
3,600
Beck, capital
(20%)
(13,200
)
(deficit)
Sadak, capital
(10%)
(9,200
)
(deficit)
Emerson, capital
(20%)
18,000
Page, capital
(10%)
(7,200
)
(deficit)
The partners split
profits and losses as follows: Cisneros, 40 percent; Beck, 20
percent; Sadak, 10 percent; Emerson, 20 percent; and Page 10
percent.
Assuming that all
partners are personally insolvent except for Sadak and Emerson, how...
A partnership has the following account balances at the date of termination: Cash, $96,000; Noncash Assets,...
A partnership has the following account balances at the date of
termination: Cash, $96,000; Noncash Assets, $740,000; Liabilities,
$494,000; Bell, capital (50 percent of profits and losses),
$160,000; Mann, capital (30 percent), $110,000; Scott, capital (20
percent), $72,000. The following transactions occur during
liquidation:
Noncash assets with a book value of $580,000 are sold for
$480,000 in cash.
A creditor reduces his claim against the partnership from
$160,000 to $130,000, and this amount is paid in cash.
The remaining noncash...
A local dental partnership has been liquidated and the final capital balances are as follows:
A local dental partnership has been liquidated and the final capital balances are as follows: Atkinson, capital (40% of all profits and losses) $ 73,000Kaporale, capital (30%) 33,080Dennsmore, capital (20%) (48,000)Rasputin, capital (10%) ...
Bryan and Gayle are equal partners in BG Partnership. The partnership reports the following items of...
Bryan and Gayle are equal partners in BG Partnership. The
partnership reports the following items of income and expense:
Ordinary income from operations
$13,000
Interest income
5,000
Long-term capital gains
23,000
§ 179 expense
55,000
Charitable contributions
3,000
page 14-41 Which of these items are considered separately stated
items? On what form will these items be reported to the
partners?
Where will these amounts be reported by the partners?
A local dental partnership has been liquidated and the final capital balances are as follows:Atkinson, capital...
A local dental partnership has been liquidated and the final capital balances are as follows:Atkinson, capital (40% of all profits and losses) . . . . . . . . . . . . . . . . $ 70,000Kaporale, capital (30%) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30,000Dennsmore, capital (20%) ....
A local dental partnership has been liquidated and the final capital balances are as follows: Atkinson,...
A local dental partnership has been liquidated and the final capital balances are as follows:
Atkinson, capital (40% of all profits and losses) $ 68,000
Kaporale, capital (30%) 28,000
Dennsmore, capital (20%) (50,000 )
Rasputin, capital (10%) (46,000 )
If Rasputin contributes additional cash of $26,000 to the partnership, what should happen to it? (Do not round intermediate calculations.)
ATKINSON
KAPORALE
DENNSMORE
RASPUTIN
CASH DISTRIBUTION
A partnership has the following account balances: Cash, $95,000; Other Assets, $665,000; Liabilities, $305,000; Nixon (50...
A partnership has the following account balances: Cash, $95,000;
Other Assets, $665,000; Liabilities, $305,000; Nixon (50 percent of
profits and losses), $215,000; Cleveland (30 percent), $150,000;
Pierce (20 percent), $90,000. The company liquidates, and $20,500
becomes available to the partners. Who gets the $20,500? Determine
how much of this amount should be distributed to each
partner.(Do not round intermediate
calculations.)
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