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Please help , I have been trying to solve this problem and I have not being able

ID: 2408426 • Letter: P

Question

Please help , I have been trying to solve this problem and I have not being able.

value: 40.00 polnts The CDG Carlos, Dan, and Gail Partnership has decided to liquidate as of December 1, 20x6. A balance sheet on the date follows: CDG PARTNERSHIP Balance Sheet At December 1, 20x6 Assets Cash Accounts Receivable (net) Inventories Property. Plant and Equipment (net) S 26,000 77.000 102,000 304,000 Total Assets 5509,000 Liabilities and Capital Liabilities: Accounts Payable 5273,000 Capital Carlos, Capital Dan, Capital Gail, Capital $122,000 52,000 82.000 Total Capital 236.000 Total Liabilities and Capital 5509,000 Additional Information Each partner's assets (excluding partnership capital interests) and personal liabilities of each partner as of December 1, 20X6, follow Carlos an Personal assets 252,000 5302,000 352,000 Personal liabilities (231.000) (239,000 (327,800) Personal net worth S 21.000 S 63.000 24.200 2. Carlos, Dan, and Gail share profits and losses in the ratio 20:40:40 3. CDG sold all noncash assets on December 10, 20x6, for $262,400

Explanation / Answer

-------------------------------------------------------------CDG Partnership-----------------------------------------------------------------------

----------------------------------------------------Statement of Realization and Liquidation-------------------------------------------------

--------------------------------------------------Lump-sum Liquidation on December 10 2016---------------------------------------------

Cash

Non Cash Assets

Liabilities

Carlos Capital

Dan Capital

Gail Capital

Preliquidation Balances

$        26,000.00

$     483,000.00

$ (273,000.00)

$ (122,000.00)

$ (52,000.00)

$       (62,000.00)

Sale of Asset and Distribution of loss

$      262,400.00

$ (483,000.00)

$      44,120.00

$    88,240.00

$         88,240.00

$      288,400.00

$                      -  

$ (273,000.00)

$    (77,880.00)

$    36,240.00

$         26,240.00

Cash Contributed by Gail to the Extent of Positive net worth

$        24,200.00

$       (24,200.00)

$      312,600.00

$                      -  

$ (273,000.00)

$    (77,880.00)

$    36,240.00

$           2,040.00

Distribution of Deficit of Insolvent Partner

$            680.00

$      1,360.00

$         (2,040.00)

$      312,600.00

$                      -  

$ (273,000.00)

$    (77,200.00)

$    37,600.00

$                        -  

Contribution by Dan to Remedy Deficit

$        37,600.00

$ (37,600.00)

$      350,200.00

$                      -  

$ (273,000.00)

$    (77,200.00)

$                   -  

$                        -  

Payment To Creditors

$   (273,000.00)

$    273,000.00

$        77,200.00

$                      -  

$                     -  

$    (77,200.00)

$                   -  

$                        -  

Payment To Partners

$      (77,200.00)

$                     -  

$      77,200.00

$                   -  

Post Liquidation Balances

$                       -  

$                      -  

$                     -  

$                      -  

$                   -  

$                        -   

------------------------------------------Calculation of Loss on Liquidation------------------------------------

Total Assets

A

$     509,000.00

Less- Cash

B

$     (26,000.00)

C=A-B

$     483,000.00

Cash by Disposal of Assets

D

$     262,400.00

Loss On Liquidation

E=C-D

$     220,600.00

Loss Distributed Amongst Partners

Profit Sharing Ratio

Carlos

20%

$       44,120.00

Dan

40%

$       88,240.00

Gail

40%

$       88,240.00

$     220,600.00

--------------------------------------------------------------CDG Partnership---------------------------------------------------------------------

-------------------------------------------------------------Net Worth of Partners--------------------------------------------------------------

--------------------------------------------------------------December 10 2016-----------------------------------------------------------------

Carlos

Dan

Gail

Personal Assets excluding Partnership Capital Interest

$      252,000.00

$     302,000.00

$    352,000.00

Personal Liabilities

$   (231,000.00)

$ (239,000.00)

$ (327,800.00)

Personal Net worth Exclusing Partnershio Capital Interest Dec 1 2016

$        21,000.00

$       63,000.00

$      24,200.00

Contribution to Partnership

$                       -  

$     (37,600.00)

$    (24,200.00)

Liquidating distributions from Partnership

$        77,200.00

$                      -  

$                     -  

Net Worth on December 10 2016

$        98,200.00

$       25,400.00

$                     -  

-------------------------------------------------------------CDG Partnership-----------------------------------------------------------------------

----------------------------------------------------Statement of Realization and Liquidation-------------------------------------------------

--------------------------------------------------Lump-sum Liquidation on December 10 2016---------------------------------------------

Cash

Non Cash Assets

Liabilities

Carlos Capital

Dan Capital

Gail Capital

Preliquidation Balances

$        26,000.00

$     483,000.00

$ (273,000.00)

$ (122,000.00)

$ (52,000.00)

$       (62,000.00)

Sale of Asset and Distribution of loss

$      262,400.00

$ (483,000.00)

$      44,120.00

$    88,240.00

$         88,240.00

$      288,400.00

$                      -  

$ (273,000.00)

$    (77,880.00)

$    36,240.00

$         26,240.00

Cash Contributed by Gail to the Extent of Positive net worth

$        24,200.00

$       (24,200.00)

$      312,600.00

$                      -  

$ (273,000.00)

$    (77,880.00)

$    36,240.00

$           2,040.00

Distribution of Deficit of Insolvent Partner

$            680.00

$      1,360.00

$         (2,040.00)

$      312,600.00

$                      -  

$ (273,000.00)

$    (77,200.00)

$    37,600.00

$                        -  

Contribution by Dan to Remedy Deficit

$        37,600.00

$ (37,600.00)

$      350,200.00

$                      -  

$ (273,000.00)

$    (77,200.00)

$                   -  

$                        -  

Payment To Creditors

$   (273,000.00)

$    273,000.00

$        77,200.00

$                      -  

$                     -  

$    (77,200.00)

$                   -  

$                        -  

Payment To Partners

$      (77,200.00)

$                     -  

$      77,200.00

$                   -  

Post Liquidation Balances

$                       -  

$                      -  

$                     -  

$                      -  

$                   -  

$                        -