Tom,Dick,and Harry are partners in an equipment leasing business that has not been able to generate the type of revenue expected by the partners.They share profits and losses in a ratio of 5:3:2.They have decided to liquidate the business and have sold all the assets except for one piece of heavy machinery.All partnership liabilities have been settled and all the partners are personally insolvent.The machinery has a book value of $85,000,and the partners have capital account balances as follows:
Each of the following are independent cases.

-Refer to the information given above.What amount of cash will each partner receive as a liquidating distribution if the machinery is sold for 33,000 dollars?

Question

Tom,Dick,and Harry are partners in an equipment leasing business that has not been able to generate the type of revenue expected by the partners.They share profits and losses in a ratio of 5:3:2.They have decided to liquidate the business and have sold all the assets except for one piece of heavy machinery.All partnership liabilities have been settled and all the partners are personally insolvent.The machinery has a book value of $85,000,and the partners have capital account balances as follows:
Each of the following are independent cases.
 
-Refer to the information given above.What amount of cash will each partner receive as a liquidating distribution if the machinery is sold for 33,000 dollars?

Quizplus · Accepted Answer

The correct choice depends on the specific details of the partnership agreement and the liquidation process, which are not provided in the question. However, if Option C is the correct choice, it likely aligns with the agreed distribution of assets among partners after selling the machinery for $33,000.

Tom,Dick,and Harry Are Partners in an Equipment Leasing Business That