Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. liquidating partnerships prior to liquidating thei

Liquidating Partnerships Prior to liquidating their partnership, MacPherson and Dunn had capital accounts of $35,000...

60.1K

Verified Solution

Question

Accounting

image
Liquidating Partnerships Prior to liquidating their partnership, MacPherson and Dunn had capital accounts of $35,000 and $66,000, respectively. Prior to liquidation, the partnership had no cash asse other than what was realized from the sale of assets. These partnership assets were sold for $120,000. The partnership had $3,000 of liabilities. MacPherson and Dunn share Income and losses equally. Determine the amount received by MacPherson as a final distribution from liquidation of the partnership. X 1. Begin with MacPherson equity prior to liquidation. 2. Adjust the equity for the gain or loss on the sale of the assets. 3. Allocate the gain/loss to partner capital accounts based on the income-sharing ratio. 4. Add beginning equity plus allocated gain/loss to determine liquidation distribution

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

Also, find the Ix, Iy, rx, ry, and J for an 8 inch tall, 6...

Civil Engineering
Q

Badminton (True or False) The doubles service court consists of the same area as the singles service...

Physics
Q

Formulate a thread of at least 300 words that answers the following question: Dass-Brailsford describes factors that...

Psychology
Q

Write the procedure for steam purging

Mechanical Engineering
Q

1045 Steel (quenched specimen) Draw a picture of what you think the microstructure would look like and...

Mechanical Engineering
Q

1. If you were to toss a fair coin 5 times, how many different possible sequences...

Basic Math
Q

3 H Gobind Khorana described a synthetic RNA copolymer poly UC which encodes A poly...

Biology
Q

When a conductor is rotated in perpendicular magnetic field then its free electrons initially 1...

Physics
Q

A wave is represented by y Asin kx wt p The amplitude and wavelength of...

Physics
Q

On a common-size income statement, all items are shown as percentages of gross revenue. percentages...

Accounting
Q

Ed is a 14 . wing reasonable expenses. How much can Ed deduct? 1,000 in...

Accounting
Q

Shelly Beaman (social security number 412-34-5670) is single and resides at 540 Front Street, Ashland,...

Accounting