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2 years ago

When a partnership is liquidated, how is the final distribution of partnership cash made to the partners?

1 answer:

4 0

According to the profit and loss the partnership is liquidated, and the final distribution of partnership cash is made to the partners.

When a partnership is liquidated, how is the final distribution of partnership cash made to the partners? Which of the subsequent statements is actually concerning the accounting for a partnership going via liquidation? within a liquidation, all gains and losses are divided equally among some of the partners.

The partnership comes to a decision to liquidate, the property of the partnership is sold, liabilities are paid off, and any remaining coins are sent to the companions according to their capital account balances.

Liquidating distributions (coins or noncash) are a form of a return of capital. Any liquidating distribution you receive isn't always taxable to you until you recover the basis of your inventory. After the idea of your stock is reduced to zero, you ought to document the liquidating distribution as a capital advantage.

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For 2012, Everyday Electronics reported $22.5 million on sales and $18 million of operating costs (including depreciation). The

sammy [17]

Answer:

$1,575,000

Explanation:

Net operating profit before taxes:

= Sales - operating costs

= $22,500,000 - $18,000,000

= $4,500,000

Net operating profit after taxes:

= Net operating profit before taxes - Taxes

= $4,500,000 - ($4,500,000 × 0.35)

= $4,500,000 - $1,575,000

= $2,925,000

Economic Value Added:

= Net Operating Profit After Taxes - (Operating Capital × Weighted Average Cost of Capital)

= $2,925,000 - (15,000,000 × 9%)

= $2,925,000 - $1,350,000

= $1,575,000

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3 years ago

Ben and John formed BCD Inc., a corporation, in 2013. Ben received 80% of the voting common stock, the only class of stock and J

Lady_Fox [76]

Answer:

Gain recognized by Ben = $10,000

Explanation:

Given Data:

Adjusted basis of property=$40000

Cash received = $15000

Additional stock received = $35000

Total received = Cash received + Additional stock received

= $35000 + $15000

= $50000

Gain recognized by Ben = Total received - Adjusted basis of property

=$50,000 -$40,000

= $10,000

Therefore, gain recognized by Ben = $10,000

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2 years ago

The wage theory that states that differences in wage rates are determined by collective bargaining is the

shtirl [24]

The correct answer for the question that is shown above is this one: "c. theory of negotiated wages." The wage theory that states that differences in wage rates are determined by collective bargaining is the theory of negotiated wages. C<span>ollective bargaining is a process of negotiations between employers and the representatives of a unit of employees aimed at reaching agreements that regulate working conditions. </span>

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3 years ago

Jay-cee corporation had 20,000 shares of $4 par value common stock outstanding on january 1. on january 20, the company purchase

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3 years ago

A shift in a PPC/PPF to the right (or outward) illustrates Growth which may be generated by __________________ (better utilizing

Elina [12.6K]

Answer:

The correct answer is economic growth.

Explanation:

A production possibility curve or frontier shows the different combinations or bundles of two goods that can be produced using limited resources. The curve is concave because of increasing opportunity cost.

An outward shift in the production possibility curve shows an increase in the level of production. This can happen because of two reasons ,

Increase in the quantity of resources available , and
Improvement in technology

Both of these factors will help in increasing the level of production. In other words, we can say that the outward shift in the production possibility curve shows economic growth.

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3 years ago