Turner, Roth, and Lowe are partners who share income and loss in
a 1:4:5 ratio (in percents: Turner, 10%; Roth, 40%; and Lowe, 50%).
The partners decide to liquidate the partnership. Immediately
before liquidation, the partnership balance sheet shows total
assets, $142,800; total liabilities, $92,000; Turner, Capital,
$3,900; Roth, Capital, $14,700; and Lowe, Capital, $32,200. Cash
received from selling the assets was sufficient to repay all but
$35,000 to the creditors.
a. Calculate the loss from selling the
assets.
b. Allocate the loss from
part a to the partners.
c. Determine how much each partner should
contribute to the partnership to cover any remaining capital
deficiency.
Turner, Roth, and Lowe are partners who share income and loss in a 1:4:5 ratio (in percents: Turner, 10%; Roth, 40%; and
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