Question

Prior to liquidating their partnership, Craig and Jenny had capital accounts of $76,400 and $119,830, respectively. The partnership assets were sold for $236,580. The partnership had $24,870 of liabilities. Craig and Jenny share income and losses equally.

Answer 1

Answer:

The question is missing the requirement,which is found below:

Determine the amount received by Jenny as a final distribution from liquidation of the partnership. Round to the nearest dollar. Jenny's equity prior to liquidation $ Realization of asset sales  $ Gain on liquidation $ Jenny's share of gain $ Jenny's cash distribution $

Jenny's cash distribution from liquidation is $140,005

Explanation:                                                        $                                    $

Jenny's equity prior to liquidation                                                    119,830

Realization of assets                                    236,580

Partner's capital invested

($76400+$119,830)                                      (196230 )

Gain on liquidation                                        40,350

Jenny's share of gain(50%*$40350)                                                  20175

Jenny's cash distribution                                                                     140,005