Asked by
Ñëñwå Shämõüñ
on Dec 16, 2024
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The balance sheet of Morgan and Rockwell was as follows immediately prior to the partnership's liquidation: cash, $20,000; other assets, $160,000; liabilities, $40,000; Morgan, capital, $60,000; Rockwell, capital, $80,000. The other assets were sold for $139,000. Morgan and Rockwell share profits and losses in a 2:1 ratio. As a final cash distribution from the liquidation, Morgan will receive cash totaling
A) $46,000
B) $51,000
C) $60,000
D) $49,500
Final Cash Distribution
The last payment made to investors or shareholders, liquidating the remaining cash balance of an investment or fund.
Capital Balances
The amounts of money that partners or shareholders have invested in a company, represented in the equity section of the balance sheet.
Profits And Losses
The financial result of a company's operations, including all revenues and expenses over a given period, indicating overall performance.
- Master the procedure of partnership dissolution, which includes the allocation of assets and the payment of liabilities.
- Understand the relationship between partnership agreements, alterations in partnership frameworks, and their effects on capital and cash distributions.
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Learning Objectives
- Master the procedure of partnership dissolution, which includes the allocation of assets and the payment of liabilities.
- Understand the relationship between partnership agreements, alterations in partnership frameworks, and their effects on capital and cash distributions.