Lola, Melvin, and Nettie are in the process of liquidating their partnership. Since it may take several months to convert the other assets into cash, the partners agree to distribute all available...



Lola, Melvin, and Nettie are in the process of liquidating their partnership. Since it may take several months to convert the other assets into cash, the partners agree to distribute all available cash immediately, except for $12,000 that is set aside for contingent expenses. The balance sheet and residual profit and loss sharing percentages are as follows:



Cash                                      $       500,000                Accounts payable             $      225,000


Other assets                                 225,000                Lola, capital (20%)                     168,000


                                                                                        Melvin, capital (30%)            270,000


                                                ___________               Nettie, capital (50%)                  62,000


Total assets                         $       725,000                Total liab./equity               $      725,000



Using a safe payment schedule, how much cash should Lola receive in the first distribution?


























A.

 $202,500



B.

$98,000



C.

$81,000



D.

$168,600





Jun 06, 2022
SOLUTION.PDF

Get Answer To This Question

Related Questions & Answers

More Questions »

Submit New Assignment

Copy and Paste Your Assignment Here