Re: {LW1 Summer} Module 9 Multiple Choice Practice Question 2 Help Please

[Deckhardt]

Hi Lily

You need to take the assets minus liabilities and partner equity which is 130,000 - 39,000 + 100,000= (9,000) which is the amt to be divided between the partners

9,000 / 3 = 3,000 loss to each partner

Once you have taken the 3,000 off of each partners amt left in capital acct..it adds to the 91,000 which would be the amt for distribution after assets minus liabilities

Hope this helps

Donna

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"liliana.cavalheiro" <liliana.c...@gmail.com> wrote:

• Hi Everyone,
• I feel really dumb right now, but i just don't understand how they reached the correct answer. Can anyone explain it to me?

   

• Module 9 Multiple Choice Practice Question 2

  	Aaron, Babs, and Cory were equal partners in a delivery business. When Aaron gave notice of dissolution of the partnership, Aaron had $30,000 in his capital account, Babs had $50,000, and Cory had $20,000. The partnership assets were $130,000 and the liabilities were $39,000. How much money will be distributed to Aaron, Babs, and Cory, respectively? Module 9, June03L Answer
  	Selected Answer: $30,000; $50,000; $20,000 Correct Answer: $27,000; $47,000; $17,000 Answer Feedback: Sorry. The total of these numbers is not $91,000, which is the amount available for distribution.   Thank you, Lily

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[liliana.cavalheiro]

Thanks Donna! I got confused. I thought the loss was supposed to be in proportion by the amount invested, but i understand it now.

 

Lily