Business, 14.04.2020 18:54 arnold2619
The partnership of Frick, Wilson, and Clarke has elected to cease all operations and liquidate its business property. A balance sheet drawn up at this time shows the following account balances:
Cash $ 61,000
Liabilities $ 44,000
Noncash assets 213,000
Frick, capital (60%) 123,000
Wilson, capital (20%) 34,000
Clarke, capital (20%) 73,000
Total assets $ 274,000
Total liabilities and capital $ 274,000
Required:
(a) Prepare a predistribution plan for this partnership
(b) The following transactions occur in liquidating this business:
1. Distributed cash based on safe capital balances immediately to the partners. Liquidation expenses of $8,000 are
estimated as a basis for this computation.
2. Sold noncash assets with a book value of $94,000 for $60,000.
3. Paid all liabilities.
4. Distributed cash based on safe capital balances again.
5. Sold remaining noncash assets for $51,000.
6. Paid actual liquidation expenses of $6,000 only.
7. Distributed remaining cash to the partners and closed the financial records of the business permanently.
Produce a final statement of liquidation for this partnership using the predistribution plan to determine payments of cash
to partners based on safe capital balances.
Answers: 3
Another question on Business
Business, 21.06.2019 17:40
Steffi is reviewing various licenses and their uses. match the licenses to their respective uses.
Answers: 3
Business, 22.06.2019 07:10
9. tax types: taxes are classified based on whether they are applied directly to income, called direct taxes, or to some other measurable performance characteristic of the firm, called indirect taxes. identify each of the following as a “direct tax,” an “indirect tax,” or something else: a. corporate income tax paid by a japanese subsidiary on its operating income b. royalties paid to saudi arabia for oil extracted and shipped to world markets c. interest received by a u.s. parent on bank deposits held in london d. interest received by a u.s. parent on a loan to a subsidiary in mexico e. principal repayment received by u.s. parent from belgium on a loan to a wholly owned subsidiary in belgium f. excise tax paid on cigarettes manufactured and sold within the united states g. property taxes paid on the corporate headquarters building in seattle h. a direct contribution to the international committee of the red cross for refugee relief i. deferred income tax, shown as a deduction on the u.s. parent’s consolidated income tax j. withholding taxes withheld by germany on dividends paid to a united kingdom parent corporation
Answers: 2
Business, 22.06.2019 07:30
When selecting a savings account, you should look at the following factors except annual percentage yield (apy) fees minimum balance interest thresholds taxes paid on the interest variable interest rates
Answers: 1
You know the right answer?
The partnership of Frick, Wilson, and Clarke has elected to cease all operations and liquidate its b...
Questions
Business, 22.01.2020 01:31
History, 22.01.2020 01:31
