Liquidation schedule-positive capital accounts The ABC partnership reports the following condensed balance sheet: Cash $300,000...
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Liquidation schedule-positive capital accounts The ABC partnership reports the following condensed balance sheet: Cash $300,000 Liabilities $430,000 Noncash assets 700,000 Partner A, capital 150,000 Partner B, capital 180,000 Partner C, capital 240,000 Total assets $1,000,000 Total liabilities and partner capital $1,000,000 The partners wish to liquidate the partnership. The noncash assets are sold for $500,000 with the loss distributed to the partners in the ratio of 35%:20%:45% to partner A, B, and C, respectively. The liabilities are paid in full. Prepare a schedule detailing the liquidation of the assets, repayment of the liabilities, and distribution of the remaining cash to the partners. HINT: Use a negative sign with answers that reduce account balances. Liquidation Schedule of ABC Partnership ----Capital Accounts----- Cash Noncash Assets Liabilities Capital account, prior to liquidation $ 0 $ 0 $ 0 $ 0 $ 0 $ Sale of noncash assets 0 0 0 0 0 A B C 0 0 0 0 0 0 0 0 Payment of creditors 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Distribution to partners Post-liquidation balances 0 0 $ $ 0 $ 0 $ 0 $ 0
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