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Problem - Windl, Houghton, and Pahli decided to liquidate their partnership on October 1. After the noncash assets were sold, and the liabilities paid the capital account balances were Wind!, $86,900: Houghton, $34,000: and Pahli, $50,800. The partners divide profits and losses equally. The partnership has $171,700 of cash.
Required -
How much cash will each partner receive in the final liquidation?
Assume instead that there is $135,700 of cash after the noncash assets are sold and the liabilities are paid. How much cash will each partner receive?
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