A partnership has the following balance sheet prior to liquidation. ASSETS LIABILITIES & CAPITAL Cash...
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A partnership has the following balance sheet prior to liquidation. ASSETS LIABILITIES & CAPITAL Cash Other Assets 43,000 Liabilities Capital Playa 40% 124,000 Capital, Bahia 30% 129,000 Capital, Arco 30% 130,000 60,000 400,000 Total 443,000 Total 443,000 During liquidation, Other Assets are sold for $120,000 and $30,000 in liquidation expenses are incurred. 1. Will all the creditors be paid in full at the conclusion of this liquidation? a. Yes, all creditors including those related to the liquidating expenses will be in full b. Yes, all except those creditors related to the liquidating expenses. C. No, only a limited portion of the outstanding liabilities will be paid d. No, none of the liabilities will be paid 2. What amount will be paid to Arco at the conclusion of this liquidation? a. Zero b. 12,900 c. 14,333 None of the above of cash will be paid to Playa at the conclusion of this liquidation? a. Zero b. 17,200 . 43.000 d. None of the above tnershin of Hardwick Saunders, and Fer
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