Problem IV (10 points);: (Show supportive calculations) Young & Co., a partnersh

Question

Problem IV (10 points);: (Show supportive calculations) Young & Co., a partnership, is about to begin liquidation. It is anticipated that the process s assets will consume several months. partners would like to receive cash distributions as asset sales occur. The company's books show total assets of and income sharing percentages are as follows: $500,000. Capital accounts Capital | Income sharing % Teresa Young Fred Young Danielle Martin $110,000 70,000 60,000 10% 50% Required: Prepare a cash distribution plan 3-4

Explanation / Answer

PARTNER'S CAPITAL Particulars Assets Teresa Young Fred Young Danielle Martin Sharing Ratio 40% 10% 50% Balance Before Liquidation $               5,00,000 $            1,10,000 $              70,000 $                    60,000 Less: First - Offset the Share Capital of the Partners (A) $              -2,40,000 $            1,10,000 $              70,000 $                    60,000 Balance after Offset the Captial Balance $               2,60,000 $            2,20,000 $          1,40,000 $                1,20,000 Balance After Offset will be distributed in there Partnership Ratio (B) $              -2,60,000 $            1,04,000 $              26,000 $                1,30,000 Total Payment to Partners (A+B) $                            -   $            2,14,000 $              96,000 $                1,90,000

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