question archive 1) The Donna, Megga, and Finnigan partnership began the process of liquidation with the following balance sheet: Donna, Megga, and Finnigan share profits and losses in a ratio of 3:2:5
1) The Donna, Megga, and Finnigan partnership began the process of liquidation with the following balance sheet: Donna, Megga, and Finnigan share profits and losses in a ratio of 3:2:5
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1) The Donna, Megga, and Finnigan partnership began the process of liquidation with the following balance sheet: Donna, Megga, and Finnigan share profits and losses in a ratio of 3:2:5. Liquidation expenses are expected to be $12,000.
If the noncash assets were sold for $234,000, what amount of the loss would have been allocated to Megga with respect to the noncash assets?
a. $43,200.
b. $46,800.
c. $40,000.
d. $42,400.
$43,100
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The answer is C
Step-by-step explanation
Assuming noncash assets 434,000
loss on non-cash assets = non-cash assets book value - cash received
= 434,000 - 234,000
=200,000 x 20% (3:2:5)
=40,000
