A partnership has the following account balances at the date of termination Cash, $80,000, Noncash...
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Accounting
A partnership has the following account balances at the date of termination Cash, $80,000, Noncash Assets, $660,000. Liabilities, $320,000 : Bell, capital (50 percent of profits and losses), $200.000. Mann, capital (30 percent) $120. 000 . Scott. capital (20 percent), \$100,000. The following transactions occur during liquidation: - Noncash assets with a book value of $500,000 are sold for $400,000 in cash. - A creditor reduces his claim against the partnership from $120,000 to $100,000, and this amount is paid in cash. - The remaining noncash assets are sold for $130,000 in cash. - The remaining liabilities of $200,000 are paid in full. - Liquidation expenses of $24,000 are paid in cash. - Cashremaining after the above transactions have occurred is distributed to the partners. Prepare a statement of partnership liquidation to determine how much cash each partner receives from the liquidation of: the parnnershp. (Amounts to be deducted should be entered with a minus sign.)
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