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:
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:  
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:  
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