The Keaton, Lewis, and Meador partnership had the following balance sheet just before entering liquidation: Cash$100,000 Liabilities$40,000Noncash assets 210,000 Keaton, Capital 90,000 Lewis, Capital 60,000 Meador, Capital 120,000Total$310,000 Total$310,000??Keaton, Lewis, and Meador share profits and losses in a ratio of 2:4:4.?Assume that noncash assets were sold for $58,000 and liquidation expenses in the amount of $10,000 were incurred. If Lewis was personally insolvent and could not contribute any assets to the partnership, and Keaton and Meador were both solvent, what amount of cash would Keaton receive from the distribution of partnership assets?
A. $0.
B. $59,600.
C. $57,600.
D. $60,000.
E. $56,000.
Answer: E
You might also like to view...
Which of the following is not true for a regulated electric utility that has construction work in progress?
a. The political climate of the utility commission that will be ruling on the construction work in progress costs is not an issue to be considered. b. Most utility commissions allow no construction work in progress or only a small amount in the rate base. c. In the long run, everybody pays for inefficiency and excess capacity because disallowed costs are a risk that can drive the stock price down and interest rates up for the utility. d. Costs related to construction work in progress that are disallowed are, in effect, charged to the stockholders. e. Future income will not include a return on disallowed costs.
Performance management is connected to which of the following other areas of talent management?
a. recruiting (external) b. staffing (internal) c. career management d. all of these
All of the following statements about the decision implementation phases are true EXCEPT
A) implementation is every bit as important as the decision itself. B) employees need only the decisions from the CEO, not the rationale. C) ERP, CRP, and BPM tools can all help track decision implementation. D) ES and KMS can help in training and support for decision implementation.
Under the simplifying assumptions made in the text, to calculate the amount of income tax expense associated with an investment project, first calculate the incremental net cash inflow during each year of the project and then multiply each year's incremental net cash inflow by the tax rate.
Answer the following statement true (T) or false (F)