The following account balances were available for the Linda, Josh, and Rachel partnership just before...
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Accounting
The following account balances were available for the Linda, Josh, and Rachel partnership just before it entered liquidation:
Cash
$
90,000
Liabilities
$
170,000
Noncash assets
300,000
Linda, capital
70,000
Josh, capital
50,000
Rachel, capital
100,000
Total
$
390,000
Total
$
390,000
Included in Lindas Capital account balance is a $20,000 partnership loan owed to Linda. Linda, Josh, and Rachel shared profits and losses in a ratio of 2:4:4. Liquidation expenses were expected to be $15,000. All partners were insolvent.
For what amount would noncash assets need to be sold to generate enough cash in order that at least one partner would receive some cash upon liquidation?
Any amount in excess of $185,000.
Any amount in excess of $170,000.
Any amount in excess of $165,000.
Any amount in excess of $95,000.
Any amount in excess of $90,000.
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