artner Balance A $60,000 B $29,000 C $45,000 D $15,000 B is personally bankrupt and refuses to make any contributions to the partnership. The partnership had the following assets: A building with a $150,000 carrying amount $29,000 cash Inventory with a $20,000 carrying amount The partnership has $50,000 of liabilities resulting from accounts payable to BigCorp. Upon dissolution, the partnership is able to obtain $50,000 for the building and $0 for its inventory. Calculate the amount that A, B, C, D, and BigCorp will receive upon dissolution of the partnership using the information above.

The amounts that each partnership and the supplier will receive are as follows:

A  = $11,678

B  = $5,644

C  = $8,758

D  = $2,920

BigCorp = $50,000

Explanation:

a) Data and Calculations:

Partner Balances:

A $60,000

B $29,000

C $45,000

D $15,000

Assets:

Building's carrying amount = $150,000

Cash = $29,000

Inventory = $20,000

Liabilities:

Accounts payable (BigCorp.) = $50,000

Amount realized from the partnership dissolution:

Building = $50,000

Cash = $29,000

Inventory = $0

Total = $79,000

The amount that BigCorp will receive from the partnership is:

= $50,000

The remaining $29,000 will share among the partners in proportion to their capital balances:

A $60,000/$149,000 * $29,000 = $11,678

B $29,000/$149,000 * $29,000 = $5,644

C $45,000/$149,000 * $29,000 = $8,758

D $15,000/$149,000 * $29,000 = $2,920

answer; ( prices are sticky);

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