On July 1, 20X9, the Crawford Company has the following balance sheet:
As of July 1, 20X9, the partners have personal net worth as follows:
$\begin{array}{lrr}
& \text { Palmer } & \text { Lake } \
\text { Assets } & \$ 52,000 & \$ 76,000 \
\text { Liabilities } & 47,000 & 102,000
\end{array}$ The personal net worth of each partner does not include any amounts due to or from the partnership.
Required:
Assume the other assets are sold for $103,000 after incurring liquidation expenses of $4,000. After liquidation of the partnership, determine how much is available to Lake's unsatisfied personal creditors based on the following:
a.
Application of the Uniform Partnership Act
b.
Application of common law

Question

On July 1, 20X9, the Crawford Company has the following balance sheet:
  As of July 1, 20X9, the partners have personal net worth as follows:
 $\begin{array}{lrr} 
& \text { Palmer } & \text { Lake } \
\text { Assets } & \$ 52,000 & \$ 76,000 \
\text { Liabilities } & 47,000 & 102,000
\end{array}$ The personal net worth of each partner does not include any amounts due to or from the partnership.
Required:
Assume the other assets are sold for $103,000 after incurring liquidation expenses of $4,000. After liquidation of the partnership, determine how much is available to Lake's unsatisfied personal creditors based on the following: 
a.
Application of the Uniform Partnership Act
b.
Application of common law

Quizplus · Accepted Answer

The Answer of On July 1, 20X9, the Crawford Company has the following balance sheet:
  As of July 1, 20X9, the partners have personal net worth as follows:
 $\begin{array}{lrr} 
& \text { Palmer } & \text { Lake } \
\text { Assets } & \$ 52,000 & \$ 76,000 \
\text { Liabilities } & 47,000 & 102,000
\end{array}$ The personal net worth of each partner does not include any amounts due to or from the partnership.
Required:
Assume the other assets are sold for $103,000 after incurring liquidation expenses of $4,000. After liquidation of the partnership, determine how much is available to Lake's unsatisfied personal creditors based on the following: 
a.
Application of the Uniform Partnership Act
b.
Application of common law

On July 1, 20X9, the Crawford Company Has the Following