Question

Prior to liquidating their partnership, Craig and Jenny had capital accounts of $76,400 and $119,830, respectively. The partnership assets were sold for $236,580. The partnership had $24,870 of liabilities. Craig and Jenny share income and losses equally.

Answer 1

The question is missing the requirement,which is found below:

Determine the amount received by Jenny as a final distribution from liquidation of the partnership. Round to the nearest dollar. Jenny's equity prior to liquidation $ Realization of asset sales $ Gain on liquidation $ Jenny's share of gain $ Jenny's cash distribution $

Jenny's cash distribution from liquidation is $140,005

Explanation: $ $

Jenny's equity prior to liquidation 119,830

Realization of assets 236,580

Partner's capital invested

($76400+$119,830) (196230 )

Gain on liquidation 40,350

Jenny's share of gain(50%*$40350) 20175

Jenny's cash distribution 140,005