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sergejj [24]
3 years ago
13

Minden, Mel, and Montana decide to liquidate their partnership. All assets are sold, and the liabilities are paid. Following the

se transactions, the capital balances are as follows: Minden, $27,400; Mel, $(12,600); Montana, $43,500. The income-sharing ratio for Minden, Mel, and Montana is 3:4:3. Mel is unable to contribute any assets to reduce the deficiency. How much cash will Montana receive as a result of the partnership liquidation
Business
1 answer:
Snezhnost [94]3 years ago
4 0

Answer:

Minden, Mel, and Montana

Montana will receive $37,200 following the partnership liquidation.

Explanation:

Capital balances    Income-sharing ratios  New sharing ratios

Minden, $27,400;       3/10                              1/2

Mel, $(12,600);            4/10                              0

Montana, $43,500     3/10                              1/2

The negative balance of Mel's capital will be shared equally between Minden and Montana, thus:

Minden = $12,600/2 = $6,300

Montana = $12,600/2 = $6,300

Montana is now entitled to receive $37,200 ($43,500 - $6,300)

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