prepare a predistribution plan for this partnership 593698
A local partnership is to be liquidated. Commissions and other liquidation expenses are expected to total $19,000. The business’s balance sheet prior to the commencement of liquidation is as follows:
|
Cash |
$27,000 |
Liabilities |
$40,000 |
|
Noncash assets |
254,000 |
Simpson, capital (20%) |
18,000 |
|
Hart, capital (40%) |
40,000 |
||
|
Bobb, capital (20%) |
48,000 |
||
|
Reidl, capital (20%) |
135,000 |
||
|
Total assets |
$281,000 |
Total liabilities and capital |
$281,000 |
Prepare a predistribution plan for this partnership.