The following partnership is being liquidated:
|
Cash |
$36,000 |
Liabilities |
$50,000 |
|
Noncash assets |
174,000 |
Able, loan |
10,000 |
|
Able, capital (20%) |
40,000 |
||
|
Moon, capital (30%) |
60,000 |
||
|
Yerkl, capital (50%) |
50,000 |
a. Liquidation expenses are estimated to be $12,000. Prepare a predistribution schedule to guide the distribution of cash.
b. Assume that assets costing $28,000 are sold for $40,000. How is the available cash to be divided?