L, M, and N are in the process of liquidating their partnership. Since it may take several months to convert the other assets into cash, the partners agree to distribute all available cash immediately, except for $12,000 which is set aside for contingent expenses. The balance sheet and residual profit and loss sharing percentages are as follows: Cash 500,000 Other assets 225,000 Select one: O a. 198,900 b. 120,600 C. 0 d. 143,500 Accounts payable L, capital (20%) O O O M, capital (30%) N, capital (50%) 262,000 Using a safe payment schedule, how much cash should M receive in the first distribution? 25,000 168,000 270,000

L, M, and N are in the process of liquidating their partnership. Since it may take several months to convert the other assets into cash, the partners agree to distribute all available cash immediately, except for $12,000 which is set aside for contingent expenses. The balance sheet and residual profit and loss sharing percentages are as follows: Cash 500,000 Other assets 225,000 Select one: O a. 198,900 b. 120,600 C. 0 d. 143,500 Accounts payable L, capital (20%) O O O M, capital (30%) N, capital (50%) 262,000 Using a safe payment schedule, how much cash should M receive in the first distribution? 25,000 168,000 270,000

SWFT Essntl Tax Individ/Bus Entities 2020

23rd Edition

ISBN:9780357391266

Author:Nellen

Publisher:Nellen

Chapter14: Partnerships And Limited Liability Entities

Section: Chapter Questions

Problem 2BD

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10 of estion L, M, and N are in the process of liquidating their partnership. Since it may take several months to convert the other assets into cash, the partners agree to distribute all available cash immediately, except for $12,000 which is set aside for contingent expenses. The balance sheet 25,000 and residual profit and loss sharing percentages are as follows: Cash 500,000 Accounts payable Other assets 225,000 L, capital (20%) 168,000 270,000 N, capital (50%) M, capital (30%) 262,000 Using a safe payment schedule, how much cash should M receive in the first distribution?
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