Question 10 Answer: B

Safe Payments
35%
Balances before payment to partners Jesse, Capital
Loans
Capital 320,000.00
Total Interest 320,000.00
Unrealized non cash assets 50,000.00 -4,410.00
cash withheld 12,600.00 -314,090.00
Payment to partners 1,500.00

share of Jesse in the unrealized NCA 314,090.00

NCA 1,100,000.00
Unsold NCA 897,400.00
CV of the noncash assets sold-Jan 202,600.00

Question 11 Answer: A
CV of the noncash assets sold-Jan 202,600.00
noncash assets were sold at a loss -20,000.00
SP of the noncash assets sold 182,600.00

Question 12 Answer: C
Remaining liabilities s of January 90,000.00
Cash withheld policy of the partnership 12,600.00
total cash withheld 102,600.00

Question 13 Answer: C
Cash Priority Program
40% 30% 30%
Balances before liquidation Cliff, CapitalJay, Capital Henry, Capital
Loans 10,000.00 15,000.00
Capital 20,000.00 20,000.00 25,000.00
Total interest 20,000.00 30,000.00 40,000.00
Divided by P&L ratio 0.40 0.30 0.30
Max absorption capacity 50,000.00 100,000.00 133,333.33
Allocation: -33,333.33
50,000.00 100,000.00 100,000.00
Allocation: -50,000.00 -50,000.00
50,000.00 50,000.00 50,000.00
Allocation: cash distribution base on P&L ratio

Question 14 Answer: A
Beg. Cash balance 12,500.00
Proceeds 30,000.00
Liquidation expense -5,500.00
Liability paid -10,000.00
Cash withheld -2,000.00
Cash distributed to partners- Feb. 25,000.00
Question 15 Answer: D
Total cash should be received by Henry 25,000.00
Received at February -7,500.00
Received at January -10,500.00
Cash received during March 7,000.00
 40% 30% 30%
Cliff, Capital Jay, Capital Henry, Capital

-10,000.00

-15,000.00 -15,000.00

40,000.00