Answer:
LARSON, NORRIS, SPENCER AND HARRISON
PREDISTRIBUTION PLAN FOR LIQUIDATING PARTNERSHIP
ASSET
Cash $28,250
liquidating expense <u> (8,000) </u> 20,250
Account receivable 44,000
inventory 39,000
land and building 23,000
Equipment 104,000
Total Asset 230,250
Liabilities <u> (47,000)</u>
Net asset 183,250
Asset to be distributed as follows:
Larson(15,000 - 1600) 13,400
Norris(60,000 -2400) 57,600
Spencer(75,000 - 1600) 73,400
Harrison(41,250-2400) 38,850 <u> ( 183,250)</u>
<u> 0 </u>
Loss
share of liquidation expenses
Larson = 20%*8000 = 1600
Norris = 30%*8000 = 2400
Spencer = 20%*8000= 1600
Harrison = 30%*8000 = 2400
Explanation: