Capital balances for Hold and Held are $225,000 and $350,000 immediately before liquidation.Noncash assets with a book value of $500,000 are sold for $560,000 cash.Total liabilities of $270,000 are paid by the partnership.The amount of cash available for distribution to the partners is:

Question

Quizplus · Accepted Answer

A) Cash?? + 500,000 = 270,000 + 225,000 + 350,000; so Cash = 345,000
345,000 + 560,000 - 270,000 = 635,000

Capital Balances for Hold and Held Are $225,000 and $350,000