1.Ames and Barton are partners who share income in the ratio of 1:2 and have cap
ID: 2561505 • Letter: 1
Question
1.Ames and Barton are partners who share income in the ratio of 1:2 and have capital balances of $40,000 and $70,000, respectively, at the time they decide to terminate the partnership. After all noncash assets are sold and all liabilities are paid, there is a cash balance of $80,000. What amount of loss on realization should be allocated to Barton?
a.$80,000
b.$30,000
c.$10,000
d.$20,000
2.
When a partnership goes out of business, it is liquidated. The last step in this process is
a.division of gain or loss.
b.realization.
c.payment of liabilities.
d.distribution to partners.
3.
A limited liability corporation's (LLC) equity is reported similar to that of a
a.trust.
b.sole proprietor.
c.regular corporation.
d.partnership.
4.Which of the following equations best represents the reporting shown in a statement of partnership equity?
a.Beginning Balance of Partner Capital + Capital Additions + Net Income – Partner Withdrawals = Ending Balance of Partner Capital
b.Partner Withdrawals – Net Income – Partner Deficiency = Ending Balance of Partner Capital
c.Beginning Balance of Partner Capital – Capital Additions – Net Income – Partner Withdrawals = Ending Balance of Partner Capital
d.Ending Balance of Partner Capital + Capital Additions – Partner Withdrawals = Partnership Net Income
Explanation / Answer
1... 40000 + 70000 - 80000 = 30000
allocated to barton
30000 * 2/3 = 20000
so answer is d
d.$20000
2.. answer is d.distribution to partners.
whatever its profit or loss or liability or asset those will be distributed to partners
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