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1 July, 08:36

Prior to liquidating their partnership, Craig and Jenny had capital accounts of $76,400 and $119,830, respectively. The partnership assets were sold for $236,580. The partnership had $24,870 of liabilities. Craig and Jenny share income and losses equally.

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  1. 1 July, 08:46
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    The question is missing the requirement, which is found below:

    Determine the amount received by Jenny as a final distribution from liquidation of the partnership. Round to the nearest dollar. Jenny's equity prior to liquidation $ Realization of asset sales $ Gain on liquidation $ Jenny's share of gain $ Jenny's cash distribution $

    Jenny's cash distribution from liquidation is $140,005

    Explanation: $ $

    Jenny's equity prior to liquidation 119,830

    Realization of assets 236,580

    Partner's capital invested

    ($76400+$119,830) (196230)

    Gain on liquidation 40,350

    Jenny's share of gain (50%*$40350) 20175

    Jenny's cash distribution 140,005
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