1. A partnership has the following capital balances: A ( 20% of profits and losses) $ 100,000 B ( 30% of profits and losses) $ 120,000 C ( 50% of profits and losses) $ 180,000 If the part
1. A partnership has the following capital balances:
A ( 20% of profits and losses) $ 100,000
B ( 30% of profits and losses) $ 120,000
C ( 50% of profits and losses) $ 180,000
If the partnership is to be liquidated and $ 30,000 becomes immediately available, who gets that money? Show your work:
The attached template must be filled out along with showing work for the above problem.
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UNIT 7 POST PROBLEM 1 TEMPLATE
A, Capital
B, Capital
C, Capital
Reported Balances
$100,000
$120,000
$180,000
Assumed $370,000 loss
Potential balances
Potential loss from C’s deficit*
Current cash distribution
*The split is 20/30 or 40%/60%
