The partnership of Hendrick, Mitchum, and Redding has the following account balances: Cash Noncash assets $ 51,000 136,000 Liabilities Hendrick, capital Mitchum, capital Redding, capital This partnership is being liquidated. Hendrick and Mitchum are each entitled to 30 percent of all profits and losses with the remaining 40 percent going to Redding. a Maximum amount b. Distributed $ 41,000 91,000 71,000 (16,000) 8. What is the maximum amount that Redding might have to contribute to this partnership because of the deficit capital balance? b. How should the $10,000 cash that is presently available in excess of liabilities be distributed? Hendrick Mitchum Redding C Minimum amount i c. If the noncash assets are sold for a total of $51,000, what is the minimum amount of cash that Hendrick could receive? (Do not round intermediate calculations.)
The partnership of Hendrick, Mitchum, and Redding has the following account balances: Cash Noncash assets $ 51,000 136,000 Liabilities Hendrick, capital Mitchum, capital Redding, capital This partnership is being liquidated. Hendrick and Mitchum are each entitled to 30 percent of all profits and losses with the remaining 40 percent going to Redding. a Maximum amount b. Distributed $ 41,000 91,000 71,000 (16,000) 8. What is the maximum amount that Redding might have to contribute to this partnership because of the deficit capital balance? b. How should the $10,000 cash that is presently available in excess of liabilities be distributed? Hendrick Mitchum Redding C Minimum amount i c. If the noncash assets are sold for a total of $51,000, what is the minimum amount of cash that Hendrick could receive? (Do not round intermediate calculations.)
SWFT Essntl Tax Individ/Bus Entities 2020
23rd Edition
ISBN:9780357391266
Author:Nellen
Publisher:Nellen
Chapter18: Comparative Forms Of Doing Business
Section: Chapter Questions
Problem 38P
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Transcribed Image Text:The partnership of Hendrick, Mitchum, and Redding has the following account balances:
Cash
Noncash assets
a Maximum amount
b
Distributed
$ 51,000
136,000
This partnership is being liquidated. Hendrick and Mitchum are each entitled to 30 percent of all profits and losses with the remaining
40 percent going to Redding.
Hendrick
Mitchum
Liabilities
Hendrick, capital
Mitchum, capital
Redding, capital
a. What is the maximum amount that Redding might have to contribute to this partnership because of the deficit capital balance?
b. How should the $10,000 cash that is presently available in excess of liabilities be distributed?
c. If the noncash assets are sold for a total of $51,000, what is the minimum amount of cash that Hendrick could receive? (Do not
round intermediate calculations.)
Redding
C Minimum amount
$ 41,000
91,000
71,000
(16,000)
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