Question

Partners Ken and Macki each have a $40,000 capital balance and share income and losses in the ratio of 3:2. Cash equals $20,000, noncash assets equal $120,000, and liabilities equal $60,000. If the noncash assets are sold for $60,000, and both partners agree to make up any capital deficits with personal cash contributions, Partner Macki will eventually receive cash of

Answer 1

Answer:

Partner Macki will eventually receive cash of $16,000

Explanation:

Macki has a $40,000 capital balance.

Income and losses ratio for Macki is 2

Total Income and losses ratio = 2 + 3 = 5

Calculating for Macki

Cash to be received by partner Macki

= $40,000 * 2/5

= $16,000

Answer 2

Macki capital balance = $40,000

Macki ratio = 2

Income and losses ratio

= 2 + 3 = 5

Cash to be received by Macki as a partner

= $40,000 * 2/5

= $16,000