Bilbo, Frodo and Gandoff have had a successful law practice for many years, but have decided to retire and move to Rivendale. On January 1, 2015 when the 3 of them decided to terminate the partnership they had the following balance sheet: Cash $50,000 A/R $90,000 Supplies $40,000 Equipment (net) $100,000 Building (net) $400,000 Land $700,000 Note payable $200,000 Accounts payable $200,000 Gandoff capital $80,000 Bilbo capital $300,000 Frodo capital $600,000. They share profits and losses equally. What if any safe payments can each of the partners take on January 1, 2016? On January 31 the partnership sold the supplies for $35000. After this sale, what if any safe payments can each of the partners take on January 31 (assume no safe payments have been taken before this date) On February 29th the partnership sold the land for $206,000 and paid off the accounts payable. At the end of February what if any safe payments can each of the partners take (assume no safe payments have been taken before this date) On March 31st, 2016 the partnership sold the a/r and the equipment for $180,000. At the end of March what if any safe payments can each of the partners take (Assume that Frodo took any safe payments he was entitled to in February but that Bilbo and Gandoff did not take any safe payments) On April 30th the partnership sold off the building for $150,000 and paid off the note payable. (Remember, Frodo took any safe payments he was entitled to in February and March but that Gandoff and Bilbo took no safe payments).
Assume that any partner with a negative capital balance can cover their shortage how much does each partner get or contribute to the partnership at liquidation?
Using the same information as e, except that any partner with a negative capital balance cannot cover their shortage;
How much does each partner receive at liquidation?