The ABC Partnership Is to Be Liquidated and You Have

question 152

Essay

The ABC Partnership is to be liquidated and you have been hired to prepare a Schedule of Cash Payments for the partnership. Partners A, B, and C share profit and losses in the ratio of 6:2:2 respectively. Assume the following:
1. Equipment was sold for $80,000.
2. Liabilities were paid in full.
3. The remaining cash was distributed to the partners. (If any partner has a capital deficiency, assume that the partner is unable to make up the capital deficiency.) Instructions
Using the above information, calculate the following:
a. Cash available to be distributed to all partners.
b. Any gain or loss on sale of noncash assets.
c. The amount of cash to be received by each partner upon liquidation.

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Definitions:

Yayoi

A period in Japanese history (around 300 BCE to 300 CE) characterized by the introduction of agriculture, metalworking, and new pottery styles from the Asian continent.

Yayoi Period

A period in Japanese history from about 300 BCE to 300 CE, characterized by the introduction of rice farming, metallurgy, and new pottery techniques.

Korea

A country in East Asia, located on the Korean Peninsula, known for its rich history and cultural heritage.

China

A country in East Asia, the world's most populous nation, with a rich history that includes the development of one of the earliest civilizations.