Liquidating Partnerships Prior to liquidating their partnership, Fowler and Montgomery had capital accounts of $18,000 and $28,000, respectively. Prior to liquidation, the partnership had no cash assets other than what was realized from the sale of assets. These partnership assets were sold for $55,000. The partnership had $2,000 of liabilities. Fowler and Montgomery share income and losses equally. Determine the amount received by Fowler as a final distribution from liquidation of the partnership. 31,500 X
Liquidating Partnerships Prior to liquidating their partnership, Fowler and Montgomery had capital accounts of $18,000 and $28,000, respectively. Prior to liquidation, the partnership had no cash assets other than what was realized from the sale of assets. These partnership assets were sold for $55,000. The partnership had $2,000 of liabilities. Fowler and Montgomery share income and losses equally. Determine the amount received by Fowler as a final distribution from liquidation of the partnership. 31,500 X
Chapter21: Partnerships
Section: Chapter Questions
Problem 57P
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Transcribed Image Text:Liquidating Partnerships
Prior to liquidating their partnership, Fowler and Montgomery had capital accounts of $18,000 and $28,000, respectively. Prior to
liquidation, the partnership had no cash assets other than what was realized from the sale of assets. These partnership assets were
sold for $55,000. The partnership had $2,000 of liabilities. Fowler and Montgomery share income and losses equally.
Determine the amount received by Fowler as a final distribution from liquidation of the partnership.
31,500 X
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