Question

artner Balance A $60,000 B $29,000 C $45,000 D $15,000 B is personally bankrupt and refuses to make any contributions to the partnership. The partnership had the following assets: A building with a $150,000 carrying amount $29,000 cash Inventory with a $20,000 carrying amount The partnership has $50,000 of liabilities resulting from accounts payable to BigCorp. Upon dissolution, the partnership is able to obtain $50,000 for the building and $0 for its inventory. Calculate the amount that A, B, C, D, and BigCorp will receive upon dissolution of the partnership using the information above.

Answer 1

The amounts that each partnership and the supplier will receive are as follows:

A = $11,678

B = $5,644

C = $8,758

D = $2,920

BigCorp = $50,000

Step-by-step explanation:

a) Data and Calculations:

Partner Balances:

A $60,000

B $29,000

C $45,000

D $15,000

Assets:

Building's carrying amount = $150,000

Cash = $29,000

Inventory = $20,000

Liabilities:

Accounts payable (BigCorp.) = $50,000

Amount realized from the partnership dissolution:

Building = $50,000

Cash = $29,000

Inventory = $0

Total = $79,000

The amount that BigCorp will receive from the partnership is:

= $50,000

The remaining $29,000 will share among the partners in proportion to their capital balances:

A $60,000/$149,000 * $29,000 = $11,678

B $29,000/$149,000 * $29,000 = $5,644

C $45,000/$149,000 * $29,000 = $8,758

D $15,000/$149,000 * $29,000 = $2,920