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The Allen, Bevell, and Carter partnership began the process of liquidation with the following balance sheet: Cash $ 25,000 Liabilities $ 175,000 Noncash assets 500,000 Allen, capital 90,000 Bevell, capital 100,000 Carter, capital 160,000 Total $ 525,000 Total $ 525,000 Allen, Bevell, and Carter share profits and losses in a ratio of 3:2:5. Liquidation expenses are expected to be $14,000. If the noncash assets were sold for $275,000, what amount of the loss would have been allocated to Bevell with respect to the noncash assets

Sagot :

anthougo

The amount of the loss from the sale of non-cash assets that would have been allocated to Bevell is $45,000.

Data and Calculations:

Allen, Bevell, and Carter Partnership Balance Sheet

Cash                   $ 25,000          Liabilities                  $ 175,000

Noncash assets 500,000          Allen, capital                 90,000

                                                    Bevell, capital             100,000

                                                    Carter, capital             160,000

Total               $ 525,000            Total                       $ 525,000

Profit and Loss sharing ratio = 3:2:5

Proceeds from sale of assets = $275,000

Loss from sale of non-cash assets = $225,000 ($500,000 - $275,000)

Thus, the amount of the loss from the sale of non-cash assets that would have been allocated to Bevell is $45,000 ($225,000 x 2/10).

Learn more: https://brainly.com/question/17149203

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