Que,Rae,and Sye are in the process of liquidating their partnership.Sye has agreed to accept the inventory,which has a fair value of $60,000,as part of her settlement.A balance sheet and the residual profit and loss sharing percentages are as follows: If the partners then distribute the available cash using a safe payments schedule,Sye will receive

Question

Que,Rae,and Sye are in the process of liquidating their partnership.Sye has agreed to accept the inventory,which has a fair value of $60,000,as part of her settlement.A balance sheet and the residual profit and loss sharing percentages are as follows:  If the partners then distribute the available cash using a safe payments schedule,Sye will receive

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A)
40% 40% 20%
Que Rae Sye
Equities $98,000 $175,000 $175,000
Distribute inventory to Sye (60,000)
and:
recognize $40,000 loss (16,000)(16,000)(8,000)
Possible losses on plant (112,000)(112,000)(56,000)
Subtotal $(30,000)$47,000 $51,000
Eliminate Que's debit
balance to Rae & Sye 30,000 (20,000)(10,000)
Balance $ 0 $ 27,000 $ 41,000

Que,Rae,and Sye Are in the Process of Liquidating Their Partnership