Question

The partnership of Frick, Wilson, and Clarke has elected to cease all operations and liquidate its business property. A balance sheet drawn up at this time shows the following account balances: Cash Noncash assets $ 64,000 249,000 Liabilities Frick, capital (604) Wilson, capital (208) Clarke, capital (209) Total liabilities and capital $ 38,000 150,000 40,000 85,000 $313,000 Total assets $313,000 Part A Prepare a predistribution plan for this partnership.

Answer 1

Working Partners capital sale ($) Loss Allocation. Maximum los (1) can be absorbed capital billets allocational Most Ischeduled Fouick wilson Clarke. 60 / 20-/ 207 & 150000 40000 $ 85000 $ 289000 20000 Ohherable) 425.000 schedule a Faick. Clarke (step one balances) $ 30000 $ 45000 75) 250 Most $ 49000 vulnerable> 1 80000 Schedule 03 (step two balonces) "most clarke 100*7. $ 35000 & 35000 vulnerable Noked explained calculation of maximum loss can absorbed schedule ! Fruck 150000 x '9% 250000 wilson 40000 x clarke 100 2000 425000 85000 K 100 20 Podly 40000 schedule a Fouck. clarke 30000 x uoooo x 10/5 180000 schedule 3. clarke looy. 35000 x Х 35000