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%) Fish, capital (30%) Stone, capital (30%) $ 25,000 15,000 5,000 a. If the land is sold for $25,000, how much cash does each partner receive in a final settlement? b. If the land is sold for $15,000, how much cash does each partner receive in a final settlement? c. If the land is sold for $5,000, how much cash does each partner receive in a final settlement? (Do not round intermediate calculations. Round the final answers to nearest dollar amounts.) Brown Fish Stone Cash distribution Cash distribution a. b. C. Cash distribution

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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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%)
Fish, capita1 (30%)
Stone, capital (30%)
$ 25,000
15,000
5,000
a. If the land is sold for $25,000, how much cash does each partner receive in a final settlement?
b. If the land is sold for $15,000, how much cash does each partner receive in a final settlement?
c. If the land is sold for $5,000, how much cash does each partner receive in a final settlement?
(Do not round intermediate calculations. Round the final answers to nearest dollar amounts.)
Brown
Fish
Stone
Cash distribution
a.
b.
Cash distribution
С.
Cash distribution
Transcribed Image Text: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%) Fish, capita1 (30%) Stone, capital (30%) $ 25,000 15,000 5,000 a. If the land is sold for $25,000, how much cash does each partner receive in a final settlement? b. If the land is sold for $15,000, how much cash does each partner receive in a final settlement? c. If the land is sold for $5,000, how much cash does each partner receive in a final settlement? (Do not round intermediate calculations. Round the final answers to nearest dollar amounts.) Brown Fish Stone Cash distribution a. b. Cash distribution С. Cash distribution
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