Chapter 15, Problem 25P

Part A

To determine

a.

Determine the maximum amount that R might have to contribute to the partnership because of the deficit capital balance.

b.

Describe the distribution of $20,000 cash that is presently available in excess of liabilities.

c.

Determine the minimum amount of cash that H could receive if the noncash assets are sold for a total of $50,000.

Part B

To determine

a.

Determine the amount of money that C should contribute to the partnership if both K and R are insolvent.

b.

Determine the amount of money that K should contribute to the partnership if only R is insolvent.

c.

Determine the amount of money that S should receive from the liquidation if only K is personally insolvent.