Dancey, Reese, Newman, and Jahn were partners who shared profits and losses on a 4:2:2:2 basis, respectively. They were beginning to liquidate their business. At the start of the process, capital balances were as follows: Which one of the following statements is true for a predistribution plan?

Question

Dancey, Reese, Newman, and Jahn were partners who shared profits and losses on a 4:2:2:2 basis, respectively. They were beginning to liquidate their business. At the start of the process, capital balances were as follows:  Which one of the following statements is true for a predistribution plan?

Quizplus · Accepted Answer

D = $72,000; R = $32,000; N = $52,000; J = $24,000 with Losses Shared 4:2:2:2First eliminate lowest value J = $24,000 - $24,000 = 0D = $72,000 - $48,000 = $24,000 - $16,000 = $8,000 - $8,000 = 0R = $32,000 - $24,000 = $8,000 - $8,000 = 0N = $52,000 - $24,000 = $28,000 - $8,000 = $20,000 - $4,000 = $16,000

Dancey, Reese, Newman, and Jahn Were Partners Who Shared Profits