Question

1.

A partnership has the following account balances: Cash, $91,000; Other Assets, $645,000; Liabilities, $326,000; Nixon (50% of profits and losses), $185,000; Cleveland (30%), $135,000; Pierce (20%), $90,000. The company liquidates, and $18,500 becomes available to the partners. Who gets the $18,500? (Do not round intermediate calculations.)

	Nixon	Cleveland	pierce
safe payments

2.

The partnership of W, X, Y, and Z has the following balance sheet:

Cash	$ 52,000	Liabilities	$ 66,000
Other assets	315,000	W, capital (50% of profits and losses)	82,000
		X, capital (30%)	105,000
		Y, capital (10%)	62,000
		Z, capital (10%)	52,000

Z is personally insolvent, and one of his creditors is considering suing the partnership for the $27,000 that is currently due. The creditor realizes that liquidation could result from this litigation and does not wish to force such an extreme action unless the creditor is reasonably sure of getting the money that is due. If the partnership sells the other assets, how much money must it receive to ensure that $27,000 would be available from Z’s portion of the business? Liquidation expenses are expected to be $37,000. (Do not round intermediate calculations.)

Minimum amount:

Answer 1

partnership has the following account Nixon safe payments so Cleveland $ 14100 pierce $ 7400 = Explanation: Nixon € 185000 cleveland 135000 pierce 90,000 Reported Balance Antic pcited loss ($39150o in the ratio of 513:2] (195750) (17450 , 78300) Potential Balance 5 (10750) 17550 11 +00 10750 (6450) (4300) potential loss from 10750 Nixon's deficit i spilt 3:2) curent cash distribution so SIL 100 s 7400 * Anticipated LOSS = (5 985000 + 135000 + 90000) - 318500 $391500 ÷ 10 (st 3+2) = $39 150 N- $39150 R S . 195750 c- $39 150 X 3 = 117 450 $39150 X 2 = 78300