A local partnership has only two assets (cash of $10,000 and land with a cost of $35,000). All liabilities have been paid and the following capital balances are currently being recorded. The partners share profits and losses as follows. All partners are insolvent. Brown, capital (40%), $25,000; Fish, capital (30%), $15,000 and Stone, capital (30%), $5,000. 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?
A local partnership has only two assets (cash of $10,000 and land with a cost of $35,000). All liabilities have been paid and the following capital balances are currently being recorded. The partners share profits and losses as follows. All partners are insolvent. Brown, capital (40%), $25,000; Fish, capital (30%), $15,000 and Stone, capital (30%), $5,000. 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?
Chapter10: Partnerships: Formation, Operation, And Basis
Section: Chapter Questions
Problem 41P
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