A local partnership has assets of cash of P5,000 and a building worth P80,000.  All liabilities have been paid and the partners are all insolvent.  The partners capital accounts are as follows Harry P40,000, Landers P30,000 and Waters 15,000.  The partners share profits and losses 4:4:2.   If the building is sold for P50,000, how much cash will Waters receive in the final settlement? P5,000. P9,000. P18,000. P28,000. P55,000.

CONCEPTS IN FED.TAX.,2020-W/ACCESS
20th Edition
ISBN:9780357110362
Author:Murphy
Publisher:Murphy
Chapter14: Choice Of Business Entity—operations And Distributions
Section: Chapter Questions
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A local partnership has assets of cash of P5,000 and a building worth P80,000.  All liabilities have been paid and the partners are all insolvent.  The partners capital accounts are as follows Harry P40,000, Landers P30,000 and Waters 15,000.  The partners share profits and losses 4:4:2.  
If the building is sold for P50,000, how much cash will Waters receive in the final settlement?
P5,000.
P9,000.
P18,000.
P28,000.
P55,000.

 

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