ANSWERS-CH39 - such an existing contract the partners...

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CHAPTER 39 PARTNERS’ DISSOCIATION AND PARTNERSHIPS’ DISSOLUTION AND WINDING UP ANSWERS TO CHAPTER 39 True-False Multiple Choice 1. T 2. F 3. T 4. F 5. F 6. T 7. F 8. T 9. T 10. F 11. c 12. a 13. c 14. b 15. c 16. a 17. c 18. d 19. a 20. d Short Essay 21. The creditors will be paid first. The remaining $9,000 will go to C to repay the loan. The proceeds of assets are exhausted and C has a claim against the other partners for the unpaid portion of the loan. 22. The decisions and actions of the partners conducting the winding up appear to have been proper. Because the partners handling the winding up are to liquidate partnership assets at their highest value, it may be advantageous for them to decide to complete performance of a contract that was entered into before the partnership dissolution but had not yet been performed as of the time of the dissolution. If it is necessary to enter into new contracts with subcontractors or suppliers in order to facilitate performance of
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Unformatted text preview: such an existing contract, the partners conducting the winding up would have authority to do so. 23. Among the three partners, Andy's proper share of the amount still owed to creditors is $14,000. The total partnership loss here is $228,000 ($180,000 in contributed capital plus $48,000 in debt remaining after liquidation of assets). Andy's share of the loss is $114,000 (50 percent of $228,000), because in the absence of an agreement on loss sharing, losses are shared in the same manner that profits are shared. Because Andy has already lost his $100,000 capital contribution, he must contribute only another $14,000. If creditors compel him to pay more than $14,000, he will have a claim against Barney and Helen for any amounts he pays in excess of $14,000. Answers to Student Study Guide and Workbook Questions 64...
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This note was uploaded on 04/30/2010 for the course BUSLAW 301 taught by Professor Abu during the Spring '09 term at Abu Dhabi University.

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