Items 1 and 2 are based on the following:
The following condensed balance sheet is presented for the partnership of Alfa and Beda, who share profits and losses in the ratio of 60:40, respectively:
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|
Cash |
$. 45,000 |
|
Other assets |
625,000 |
|
Beda, loan |
30,000 |
|
$700,000 |
|
|
Accounts payable |
$120,000 |
|
Alfa, capital |
348,000 |
|
Beda, capital |
232,000 |
|
$700,000 |
The assets and liabilities are fairly valued on the balance sheet. Alfa and Beda decide to admit Capp as a new partner with 20% interest. No goodwill or bonus is to be recorded. What amount should Capp contribute in cash or other assets?
- $110,000
- $116,000
- $140,000
- $145,000
Instead of admitting a new partner, Alfa and Beda decide to liquidate the partnership. If the other assets are sold for $500,000, what amount of the available cash should be distributed to Alfa?
- $255,000
- $273,000
- $327,000
- $348,000