The partnership of Butler, Osman, and Ward was formed several years as a local tax...
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The partnership of Butler, Osman, and Ward was formed several years as a local tax preparation firm. Two partners have reached retirement age and the partners have decided to terminate operations and liquidate the business. Liquidation expenses of $48,000 are expected. The partnership balance sheet at the start of liquidation is as follows:
Cash
$
44,000
Liabilities
$
184,000
Accounts receivable
74,000
Butler, loan
44,000
Office equipment (net)
64,000
Butler, capital (25%)
120,000
Building (net)
180,000
Osman, capital (25%)
44,000
Land
170,000
Ward, capital (50%)
140,000
Total assets
$
532,000
Total liabilities and capital
$
532,000
Prepare a predistribution plan for this partnership.
he partnership of Butler, Osman, and Ward was formed several years as a local tax preparation firm. Two partners have reached retirement age and the partners have decided to terminate operations and liquidate the business. Liquidation expenses of $48,000 are expected. The partnership balance sheet at the start of liquidation is as follows:
Cash
$
44,000
Liabilities
$
184,000
Accounts receivable
74,000
Butler, loan
44,000
Office equipment (net)
64,000
Butler, capital (25%)
120,000
Building (net)
180,000
Osman, capital (25%)
44,000
Land
170,000
Ward, capital (50%)
140,000
Total assets
$
532,000
Total liabilities and capital
$
532,000
Prepare a predistribution plan for this partnership.
he partnership of Butler, Osman, and Ward was formed several years as a local tax preparation firm. Two partners have reached retirement age and the partners have decided to terminate operations and liquidate the business. Liquidation expenses of $48,000 are expected. The partnership balance sheet at the start of liquidation is as follows:
Cash
$
44,000
Liabilities
$
184,000
Accounts receivable
74,000
Butler, loan
44,000
Office equipment (net)
64,000
Butler, capital (25%)
120,000
Building (net)
180,000
Osman, capital (25%)
44,000
Land
170,000
Ward, capital (50%)
140,000
Total assets
$
532,000
Total liabilities and capital
$
532,000
Prepare a predistribution plan for this partnership.
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