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.If the land is sold for $25,000, how much cash does each partner receive in a final settlement?If the land is sold for $15,000, how much cash does each partner receive in a final settlement?If the land is sold for $5,000, how much cash does each partner receive in a final settlement? Brown, capital (40%).Fish, capital (30%)..Stone, capital (30%)$ 25,0005,000

Answered: Brown, capital (40%). Fish, capital…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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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.

If the land is sold for $25,000, how much cash does each partner receive in a final settlement?
If the land is sold for $15,000, how much cash does each partner receive in a final settlement?
If the land is sold for $5,000, how much cash does each partner receive in a final settlement?

Brown, capital (40%).
Fish, capital (30%)..
Stone, capital (30%)
$ 25,000
5,000

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