The partnership of Butler, Osman, and Ward was formed several years as a local t
ID: 2533333 • Letter: T
Question
The partnership of Butler, Osman, and Ward was formed several years as a local tax preparation firm. Two partners have reached retirement age and the partners have decided to terminate operations and liquidate the business. Liquidation expenses of $48,000 are expected. The partnership balance sheet at the start of liquidation is as follows:
Prepare a predistribution plan for this partnership.
he partnership of Butler, Osman, and Ward was formed several years as a local tax preparation firm. Two partners have reached retirement age and the partners have decided to terminate operations and liquidate the business. Liquidation expenses of $48,000 are expected. The partnership balance sheet at the start of liquidation is as follows:
Prepare a predistribution plan for this partnership.
he partnership of Butler, Osman, and Ward was formed several years as a local tax preparation firm. Two partners have reached retirement age and the partners have decided to terminate operations and liquidate the business. Liquidation expenses of $48,000 are expected. The partnership balance sheet at the start of liquidation is as follows:
Prepare a predistribution plan for this partnership.
Cash $ 44,000 Liabilities $ 184,000 Accounts receivable 74,000 Butler, loan 44,000 Office equipment (net) 64,000 Butler, capital (25%) 120,000 Building (net) 180,000 Osman, capital (25%) 44,000 Land 170,000 Ward, capital (50%) 140,000 Total assets $ 532,000 Total liabilities and capital $ 532,000Explanation / Answer
First 276000 Liabilities 184000 Liquidation expenses 48000 Butler's Loan 44000 Next 50000 Butler Next 78000 Butler 33.33% Ward 66.67% Remaining all Cash Osman 25% Butler 25% Ward 50%
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.