Chapter 3 - Chapter 3 1 In a limited liability partnership...

Info icon This preview shows pages 1–4. Sign up to view the full content.

View Full Document Right Arrow Icon
Chapter 3 1 In a limited liability partnership liquidation, the final cash distribution to partners is made in accordance with the: A) Partners' income-sharing ratio B) Balances of partners' capital accounts C) Ratio of original investments by partners D) Ratio of original investments less withdrawals by partners 2 The partners of Dawes & Epps LLP share net income and losses equally. Both Dawes and Epps are insolvent.  At the time they decided to liquidate the limited liability partnership, its balance sheet included the following:  cash, $1,000; other assets, $19,000; liabilities, $8,000; Dawes capital, $3,000; and Epps capital, $9,000. The  other assets realized $12,000 and the liabilities were paid. The amount Epps received from the liquidation of the  partnership was: A) $6,500 B) $5,500 C) $5,000 D) $2,500 E) Some other amount 3 On January 1, 2002, the partners of Snell & Thomas LLP had capital account balances of $40,000 and  $20,000, respectively. They shared net income and losses equally, and the partnership had a net income of  $10,000 during 2002. On December 31, 2002, the partnership was liquidated. If, after realization of noncash  assets and payment of liabilities, $30,000 remained for distribution to the partnership, Snell received: A) $15,000 B) $20,000 C) $25,000 D) $30,000 E) Some other amount
Image of page 1

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
4 After realization of a portion of the noncash assets of Saul, Tapp & Uris LLP, which is being liquidated, the  capital account balances were Saul, $35,000; Tapp, $40,000; and Uris, $43,000. Cash of $42,000 and other  assets with a carrying amount of $78,000 were on hand. Creditors' claims totaled $2,000. The partners shared  net income and losses equally. The cash that may be paid to Uris at this time is: A) $43,000 B) $17,000 C) $14,000 D) $13,333 E) Some other amount 5 The partners of Lon & Mab LLP share net income and losses equally. After the realization of all noncash assets  and payment of all liabilities, Lon had a capital account balance of $3,800, and Mab had a capital deficit of  $3,800. Lon has personal assets of $30,000 and personal liabilities of $35,000; Mab has personal assets of  $20,000 and personal liabilities of $18,000. The total amount that personal creditors of Lon should expect to  receive after marshaling of assets is: A) $35,000 B) $33,800 C) $32,000 D) $30,000 E) Some other amount 6 The partners of Cey, Doy & Ebb LLP had capital account balances of $40,000, $50,000, and $18,000,  respectively, and an income-sharing ratio of 4:2:1, respectively. If Cey received only $8,000 on the liquidation of  the partnership, the total amount received by all the partners on liquidation was: A) $108,000 B) $56,000 C) $52,000 D) $24,000 E) Some other amount 7 Assume the same facts as in question  6,  except that Cey received $26,000 on liquidation. How much cash did  Ebb receive from the liquidation?
Image of page 2
A) $26,000 B) $18,000 C) $14,500 D) $14,000 E) Some other amount
Image of page 3

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Image of page 4
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern