Chap 15 - back of the chapter

Chap 15 - back of the chapter - Chapter 15 - Partnerships:...

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

View Full Document Right Arrow Icon

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

View Full DocumentRight Arrow Icon

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

View Full DocumentRight Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Chapter 15 - Partnerships: Termination and Liquidation 12.Determine Safe Capital Balances; Partner has Deficit (LO1, LO3, LO4) (8 minutes) Cleveland receives $6,800 and Pierce receives $1,200 Since the partnership currently has total capital of $350,000, the $8,000 that is available would indicate maximum potential losses of $342,000. 15-1 Chapter 15 - Partnerships: Termination and Liquidation Nixon Cleveland Pierce Reported balances .............................. $170,000 $110,000 $70,000 Anticipated loss ($342,000) split on a 5:3:2 basis .............................. (171,000 ) (102,600 ) (68,400 ) Potential balances .............................. $ (1,000) $ 7,400 $ 1,600 Potential loss from Nixon's deficit (split 3:2) 1,000 (600 ) (400 ) Current cash distribution ................... $ -0- $6,800 $ 1,200 13. Final Settlement of a Partnership Being Liquidated; Various Amounts of Loss on Sale of Assets (LO1, LO3) (20 minutes) Part a. Brown gets $21,000, Fish gets $12,000, and Stone gets $2,000. Brown Fish Stone Reported balances ...................................... $25,000 $15,000 $5,000 Loss on sale of land ($10,000) split on a 4:3:3 basis....................................... (4,000 ) (3,000 ) (3,000 ) Cash distribution ......................................... $21,000 $12,000 $2,000 Part b. Brown gets $16,429 and Fish gets $8,571 Brown Fish Stone Reported balances ...................................... $25,000 $15,000 $5,000 Loss on sale of land ($20,000) split on a 4:3:3 basis............................................ (8,000 ) (6,000 ) (6,000 ) Adjusted balances ...................................... $17,000 $ 9,000 $(1,000) Potential loss from Stone's deficit (split 4:3) (571 ) (429 ) 1,000 Cash distribution ......................................... $16,429 $ 8,571 $ -0- Part c. Brown gets $10,714 and Fish gets $4,286 Brown Fish Stone Reported balances ...................................... $25,000 $15,000 $5,000 Loss on sale of land ($30,000) split on a 4:3:3 basis............................................ (12,000 ) (9,000 ) (9,000 ) Adjusted balances ...................................... $13,000 $ 6,000 $(4,000) Potential loss from Stone's deficit (split 4:3) (2,286 ) (1,714 ) 4,000 Cash distribution ......................................... $10,714 $ 4,286 $ -0- 14.Distribute Cash Contributed by Partner with Deficit Balance (LO3)(10 minutes) The entire $20,000 goes to Atkinson. Atkinson Kaporale Dennsmore Rasputin Reported balances $60,000 $20,000 $(30,000) $(50,000) Capital contribution -0--0--0- 20,000 Adjusted balances $60,000 $20,000 $(30,000) $(30,000) 15-2 Chapter 15 - Partnerships: Termination and Liquidation Potential loss from Dennsmore and Rasputin ($60,000) split on a 4:3 basis (34,286 ) (25,714 ) 30,000 30,000 Adjusted balances $25,714 $(5,714) $ -0- $ -0- Potential loss from Kaporale ($5,714) (5,714 ) 5,714-0--0- Cash distribution $20,000 $ -0- $ -0- $ -0- 15. Determine Safe Capital Balances (LO4) (8 minutes) Ball gets $143, Eaton gets $1,429, and Lake gets $3,428.Ball gets $143, Eaton gets $1,429, and Lake gets $3,428....
View Full Document

Page1 / 33

Chap 15 - back of the chapter - Chapter 15 - Partnerships:...

This preview shows document pages 1 - 4. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online