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plumsnail420Lv1
28 Sep 2019
A, B and C form the equal ABC partnership by contributing$100,000 each, and purchasing some equipment for $300,000. Theequipment has a depreciable life of six years, and all depreciation(straight line) is allocated to A. Capital accounts are properlymaintained. Any distributions in liquidation will be made accordingto the capital accounts of each partner. Partners are required torestore deficit capital accounts upon liquidation. Income asidefrom depreciation is $60,000 each year. If the partnership wereliquidated at the end of year three, how much would each partnerget?
What would your answer be if the liquidation occurred at the endof year four?
A, B and C form the equal ABC partnership by contributing$100,000 each, and purchasing some equipment for $300,000. Theequipment has a depreciable life of six years, and all depreciation(straight line) is allocated to A. Capital accounts are properlymaintained. Any distributions in liquidation will be made accordingto the capital accounts of each partner. Partners are required torestore deficit capital accounts upon liquidation. Income asidefrom depreciation is $60,000 each year. If the partnership wereliquidated at the end of year three, how much would each partnerget?
What would your answer be if the liquidation occurred at the endof year four?
Beverley SmithLv2
28 Sep 2019