Inlcuded in Perry's capital balance is a $20,000 partnership loan owed to Perry. Perry, Quincy, and Renquist shared profits and losses in a ratio of 2:4:4. Liquidation expenses were expected to be $15,000. All partners were solvent. What would be the minimum amount for which the noncash assets must have been sold, in order for Quincy to receive some cash from the liquidation?

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Business

Cara

11 August, 07:06

Inlcuded in Perry's capital balance is a $20,000 partnership loan owed to Perry. Perry, Quincy, and Renquist shared profits and losses in a ratio of 2:4:4. Liquidation expenses were expected to be $15,000. All partners were solvent. What would be the minimum amount for which the noncash assets must have been sold, in order for Quincy to receive some cash from the liquidation?

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Bryant Wilkins · Answer 1

Determine the minimum amount for which the non-cash assets must have been sold, in order for quincy to receive some cash from the liquidation:

Total non-cash assets = 300,000

Less: Balance needed from non-cash assets = 95,000

($90,000 - $15,000 - $170,000)

Adjusted non-cash assets = 205,000

Less: Liquidation expenses = 15,000

Balance of non-cash assets = 190,000

Hence, the the minimum amount for which the non-cash assets must have been sold, in order for quincy to receive some cash from the liquidation would be any amount in excess of $190,000.