Turner, Roth, and Lowe are partners who share income and loss in a 1:4:5 ratio (in percents: Turner, 10%; Roth, 40%; and
Posted: Sun Jun 05, 2022 7:05 pm
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.
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.