Question

Help!!! i will give brainliest. no plagiarism. show your work

The partnership of Brandon and Ryan is being liquidated. All gains and

losses are shared in a 3:1 ratio, respectively. Before liquidation, their

balance sheet balances are as follows:

Cash $10,000

Other Assets 8,000

Liabilities 4,000

Brandon, Capital 7,000

Ryan, Capital 7,000


a. If the Other Assets are sold for $10,000, how much will each partner receive before paying liabilities and distributing the remaining

assets?


b. If the Other Assets are sold for $8,000, how much will each partner receive before paying liabilities and distributing remaining assets?

Answer 1

Answer:

Please see the solution below:

Step-by-step explanation:

a. Compute the division of other Assets sold for $10,000

Balance on Other Assets = Sale Price - Cost Price

Balance on Other Assets = $10,000 - $8,000 = $2,000

The Balance on Other Assets sold should be divided in the ratio 3:1

Brandon = $7,000 + [$2,000 x 3/4] =  $7,000 + $1,500 = $8,500

Ryan = $7,000 + [$2,000 x 1/4] =  $7,000 + $500 = $7,500

b. a. Compute the division of other Assets sold for $8,000

Balance on Other Assets = Sale Price - Cost Price

Balance on Other Assets = $8,000 - $8,000 = $0

The Balance on Other Assets sold should be divided in the ratio 3:1

Brandon = $7,000 + [$0 x 3/4] =  $7,000 + $0 = $7,000

Ryan = $7,000 + [$0 x 1/4] =  $7,000 + $0 = $7,000