A is corrent. The requirement is to calculate the amount of cash distributed to Smith under the Uniform Partnership Act. Smith would receive the amount in his capital account adjusted for the losses on the sale of assets, or $25,200 {$30,000 - [60% X ($2,000 loss on receivables + $6,000 loss on property and equipment)]}.
B is incorrect. The requirement is to calculate the amount of cash distributed to Smith under the Uniform Partnership Act. Smith would receive the amount in his capital account adjusted for the losses on the sale of assets, or $25,200 {$30,000 - [60% X ($2,000 loss on receivables + $6,000 loss on property and equipment)]}.
C is incorrect. The requirement is to calculate the amount of cash distributed to Smith under the Uniform Partnership Act. Smith would receive the amount in his capital account adjusted for the losses on the sale of assets, or $25,200 {$30,000 - [60% X ($2,000 loss on receivables + $6,000 loss on property and equipment)]}.
D is incorrect. The requirement is to calculate the amount of cash distributed to Smith under the Uniform Partnership Act. Smith would receive the amount in his capital account adjusted for the losses on the sale of assets, or $25,200 {$30,000 - [60% X ($2,000 loss on receivables + $6,000 loss on property and equipment)]}.
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