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Brad, Walker, and Mike form the equal BMW partnership with c…
Brad, Walker, and Mike form the equal BMW partnership with cash contributions of $200,000 each. They use the cash to purchase equipment for $600,000. The equipment has a depreciable life of four years and is depreciated using the straight-line method. Under the partnership agreement, all depreciation is allocated to Brad. Capital accounts are properly maintained. Any distributions in liquidation will be made according to the capital accounts of each partner. Partners are required to restore deficit capital accounts upon liquidation. Income aside from depreciation is $90,000 each year. If the partnership were liquidated at the end of year two, how much would each partner get?
Brad, Walker, and Mike form the equal BMW partnership with c…
Questions
Brаd, Wаlker, аnd Mike fоrm the equal BMW partnership with cash cоntributiоns of $200,000 each. They use the cash to purchase equipment for $600,000. The equipment has a depreciable life of four years and is depreciated using the straight-line method. Under the partnership agreement, all depreciation is allocated to Brad. Capital accounts are properly maintained. Any distributions in liquidation will be made according to the capital accounts of each partner. Partners are required to restore deficit capital accounts upon liquidation. Income aside from depreciation is $90,000 each year. If the partnership were liquidated at the end of year two, how much would each partner get?
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