The Balance Sheet for the AB Partnership Is a S

question 29

Essay

The balance sheet for the AB Partnership is a s follows;
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$$\begin{array} { | l | l | } \hline \text { Assets } & \$ 34,000 \\\hline \text { Property \& Plant } & \$ 366,000 \\\hline \text { Wages Payable } & \$ 64,000 \\\hline \text { Loan due to } \mathrm { A } & \$ 24,000 \\\hline \text { Liabilities } & \$ 140,000 \\\hline \text { A Capital } & \$ 48,000 \\\hline \text { B Capital } & \$ 124,000 \\\hline\end{array}$$ The partners have net worth as follows:
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$$\begin{array} { | l | l | l | } \hline & \text { A } & \text { B } \\\hline \text { Assets } & \$ 104,000 & \$ 152,000 \\\hline \text { Liabilities } & \$ 94,000 & \$ 204,000 \\\hline\end{array}$$ The net worth of each partner' does not include any amounts due to or from the partnership.
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Instructions:
Assume assets are sold for $206,000 after incurring liquidation expense of $8,000.After liquidation of the partnership determine how much is available to B unsatisfied personal creditors based on the following:

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Definitions:

Entity Theory

The belief that personal qualities such as intelligence are fixed and cannot be changed through effort.

Inborn Characteristic

A trait or attribute that an individual has from birth, often influenced by genetic factors and not acquired through learning or experience.

Authoritative Leaders

Leaders who dictate policies and procedures, expecting followers to comply without questioning.

Kindness

The quality of being friendly, generous, and considerate towards others.