Respuesta :
Answer:
a. Contribution from Berry = $6,000
b-1. Contribution from Hammond = $22,556
b-2. Disbursement shall be:
Anderson = $8,889
Berry = $3,667
c. Amount to be received by Anderson on Liquidation = $11,500
Explanation:
As for the provided information we have,
Capital balances
Anderson 40% $20,000
Berry 30% $12,000
Hammond 20% $17,000 (Deficit)
Winwood 10% $25,000 (Deficit)
a. Total deficit in this case will be = Share of Hammond + Winwood = $17,000 + $25,000 = $42,000
Berry's share = [tex]\frac{30}{30+40} \times 42,000 = 18,000[/tex]
Since Berry's current balance = $12,000
Contribution required = $18,000 - $12,000 = $6,000
b-1. Total deficit of Winwood = $25,000
Hammond share = [tex]\frac{20}{20+30+40} \times 25,000 = 5,556[/tex]
Hammond's current balance = - $17,000
Thus, contribution from Hammond = $5,556 + $17,000 = $22,556
b-2. Total deficit balance = $17,000 + $25,000 = $42,000
Total sufficient balance = $20,000 + $12,000 = $32,000
Net deficit balance = $42,000 - $32,000 = $10,000
Anderson share in Deficit of Winwood = [tex]25,000 \times \frac{40}{40 + 30 +20} = 11,111[/tex]
Thus, net capital of Anderson = $20,000 - $11,111 = $8,889
Berry's share in deficit of Winwood = [tex]25,000 \times \frac{30}{40+30+20} = 8,333[/tex]
Thus, net capital from Berry = $12,000 - $8,333 = $3,667
c. Total deficit from Hammond = $17,000
Anderson share = [tex]17,000 \times \frac{40}{40+30+10} = 8,500[/tex]
Anderson's current balance = $20,000
Amount extra contributed by Anderson = $20,000 - $8,500 = $11,500
Thus, Anderson will receive $11,500 on liquidation.
Final Answer
a. Contribution from Berry = $6,000
b-1. Contribution from Hammond = $22,556
b-2. Disbursement shall be:
Anderson = $8,889
Berry = $3,667
c. Amount to be received by Anderson on Liquidation = $11,500
