The partnership of Alt, Brown, and Carns has total assets and liabilities of $30,000 and $25,000, respectively. Information relating to the partners is as follows:
Required:
a.
Assuming that the Uniform Partnership Act is applicable, indicate how the partners' personal assets would be distributed.
b.
Assuming that federal bankruptcy laws are applicable, indicate how the partners' personal assets would be distributed.
c.
Assume that the partnership had a deficit of $10,000, allocated among Alt, Brown, and Carns as follows: $2,000 surplus, $7,000 deficit, and $5,000 deficit, respectively. Indicate how the deficit would be satisfied when bankruptcy laws are applicable.

Question

The partnership of Alt, Brown, and Carns has total assets and liabilities of $30,000 and $25,000, respectively. Information relating to the partners is as follows:
  Required: 
a.
Assuming that the Uniform Partnership Act is applicable, indicate how the partners' personal assets would be distributed.
b.
Assuming that federal bankruptcy laws are applicable, indicate how the partners' personal assets would be distributed.
c.
Assume that the partnership had a deficit of $10,000, allocated among Alt, Brown, and Carns as follows: $2,000 surplus, $7,000 deficit, and $5,000 deficit, respectively. Indicate how the deficit would be satisfied when bankruptcy laws are applicable.

Quizplus · Accepted Answer

The Answer of The partnership of Alt, Brown, and Carns has total assets and liabilities of $30,000 and $25,000, respectively. Information relating to the partners is as follows:
  Required: 
a.
Assuming that the Uniform Partnership Act is applicable, indicate how the partners' personal assets would be distributed.
b.
Assuming that federal bankruptcy laws are applicable, indicate how the partners' personal assets would be distributed.
c.
Assume that the partnership had a deficit of $10,000, allocated among Alt, Brown, and Carns as follows: $2,000 surplus, $7,000 deficit, and $5,000 deficit, respectively. Indicate how the deficit would be satisfied when bankruptcy laws are applicable.

The Partnership of Alt, Brown, and Carns Has Total Assets