Answer:
Joyce cash distribution = $262500
Explanation:
given data
Joyce capital = $50,000
Xi capital = $105,000
liabilities = $10,000
assets sold = $190,000
to find out
we consider Determine the amount received by Joyce as a final distribution from liquidation of the partnership
solution
we carrying value of non-cash asset prior to liquidation is
value of non-cash asset prior to liquidation = $50,0000 + $105,000 + $10,000
value of non-cash asset prior to liquidation = $615000
so Profit on Liquidation is = value of non-cash asset prior to liquidation - Sale of Asset
Profit on Liquidation is = $615000 - $190,000
Profit on Liquidation is = $
425000
and here since
Joyce and Xi share income and losses equally
so Joyce share of profit will be
Joyce share of profit = 50% × $
425000
Joyce share of profit = $212500
and
so Joyce cash distribution will be
Joyce cash distribution = Joyce share of profit + Joyce capital
Joyce cash distribution = $212500 + $50,000
Joyce cash distribution = $262500
