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The following information concerns two different partnerships

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The following information concerns two different partnerships. These problems should be viewed as independent situations. (Do not round intermediate calculations.);Part A;The partnership of Ross, Milburn, and Thomas has the following account balances;Cash $ 44,000 Liabilities $ 35,000;Noncash assets 113,000 Ross, capital 50,000;Milburn, capital (13,000 ) (deficit);Thomas, capital 85,000;This partnership is being liquidated. Ross and Milburn are each entitled to 30 percent of all profits and losses with the remaining 40 percent to Thomas.;a.;What is the maximum amount that Milburn might have to contribute to this partnership because of the deficit capital balance?;b.;To whom should the $9,000 cash that is presently available in excess of liabilities be distributed?;Ross;Thomas;Milburn;c.;If the noncash assets are sold for a total of $49,000, what is the minimum amount of cash that Thomas could receive?;Part B;The partnership of Sampson, Klingon, Carton, and Romulan is being liquidated. It currently holds cash of $17,000 but no other assets. Liabilities amount to $32,000. The capital balances are as follows;Sampson $ 17,000;Klingon (25,000 );Carton 10,000;Romulan (17,000 );Profits and losses are allocated on the following basis: Sampson, 40 percent, Klingon, 20 percent, Carton, 20 percent, and Romulan, 20 percent.;a.;If both Klingon and Romulan are personally insolvent, how much money must Carton contribute to this partnership?;b-1.;If only Romulan is personally insolvent, how much money must Klingon contribute?;b-2. If only Romulan is personally insolvent, how will Klingon's contribution (funds) be disbursed?;c.;If only Klingon is personally insolvent, how much money should Sampson receive from the liquidation?

 

Paper#19370 | Written in 18-Jul-2015

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