A partnership currently holds three assets: cash, $10,000; land, $35,000; and a building, $50,000. The partners anticipate

Question:

A partnership currently holds three assets: cash, $10,000; land, $35,000; and a building, $50,000. The partners anticipate that expenses required to liquidate their partnership will amount to $5,000. Capital balances are as follows:

Ace, capital . . . . . . . . . . . . . . . . . $25,000

Ball, capital . . . . . . . . . . . . . . . . . 28,000

Eaton, capital . . . . . . . . . . . . . . . . 20,000

Lake, capital . . . . . . . . . . . . . . . . . 22,000

The partners share profits and losses as follows: Ace (30%), Ball (30%), Eaton (20%), and Lake (20%). If a preliminary distribution of cash is to be made, how much will each partner receive?

Distribution
The word "distribution" has several meanings in the financial world, most of them pertaining to the payment of assets from a fund, account, or individual security to an investor or beneficiary. Retirement account distributions are among the most... Partnership
A legal form of business operation between two or more individuals who share management and profits. A Written agreement between two or more individuals who join as partners to form and carry on a for-profit business. Among other things, it states...