The ALPHA, BETA, AND DELTA Partnership Has Total Assets of $260,000

question 2

Essay

The ALPHA, BETA, AND DELTA partnership has total assets of $260,000. Capital balances for partners ALPHA, BETA, and DELTA are $50,000, $30,000, and $50,000, respectively. The profit/loss percentages for partners ALPHA, BETA, and DELTA are 30%, 40%, and 30%, respectively. Included in the liabilities is a $9,000 loan payable to ALPHA. The partnership has elected to liquidate over the next several months. Liquidation expenses are estimated to be $15,000.
Required:
Assuming assets with a book value of $80,000 were sold for $60,000, and that $160,000 cash is available, how should the available cash be distributed?

Understand various business forms and their characteristics.

Grasp the concept of liability and protection in different business structures.

Evaluate the implications of profit-sharing arrangements on partnership status.

Understand the characteristics of a partnership as an entity according to the RUPA.

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Definitions:

Host Cell

A cell that a virus or another parasite invades and in which it might replicate or live.

DNA Replication

DNA Replication is the biological process of producing two identical replicas of DNA from one original DNA molecule, essential for cell division.

Bacterial Colony

A visible mass of microorganisms all originating from a single mother cell, growing together on a solid medium.

Recombinant Plasmid

A circular DNA molecule engineered to carry specific gene sequences, used in genetic engineering to clone or express particular genes.