Refer to the above information. Assume the receivables and the fixed assets were sold for $380,000 and
that all available cash, except for $40,000 which is being held back for possible future liquidation costs,
was distributed to the partners. How much cash should be distributed to B?
B. $ 48,000
C. $ 36,000
D. $ 20,000
Refer to the above information. For K to receive $32,000 from the liquidation process, how much cash
must be realized from the sale of all of the noncash assets?
Refer to the above information. If the noncash assets were sold for $340,000, how much cash would go to
D. $ 0
The capital balances, prior to the liquidation of the XYZ partnership, were as follows:
X, Y, and Z share profits and losses in the ratio of 5:3:2. As a result of a loan, the partnership owes Y
$80,000. Using the information above, which partner has the highest Loss Absorption Power (LAP) prior to
D. X and Y have the same LAP
In the computation of a partner's Loss Absorption Power (LAP), the individual partner's net capital balance
and profit-and-loss percentage are used in which of the following ways?