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A local partnership is liquidating and has only two assets (cash of $10,000 and land with a cost of $35,000). All partnership liabilities have been paid. All partners are personally insolvent. The partners have capital balances and share profits and losses as follows.
Brown,
capital
(40%)
$25,000
Fish,
(30%)
15,000
Stone,
5,000
Question a. If the land is sold for $25,000, how much cash does each partner receive in a final settlement?
Question b. If the land is sold for $15,000, how much cash does each partner receive in a final settlement?
Question c. If the land is sold for $5,000, how much cash does each partner receive in a final settlement?
Brown
Fish Stone
a.
Cash distribution
.
b.
c.
'
. .
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