Stricklan and Carper are partners who share profits and losses equally The credit balances of their Capital accounts before liquidation are $ 70,000 and $ 90,000, respectively When they liquidate their partnership, they sell the noncash assets and pay all of the partnerships liabilities, leaving a ...

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Stricklan and Carper are partners who share profits and losses equally. The credit balances of their Capital

Question:

Stricklan and Carper are partners who share profits and losses equally. The credit balances of their Capital accounts before are $ 70,000 and $ 90,000, respectively. When they liquidate their partnership, they sell the noncash assets and pay all of the partnership’s liabilities, leaving a balance of $ 110,000 in cash.
(a) What is the amount of loss or gain on realization?
(b) How much cash should be distributed to each partner? Liquidation
Liquidation in finance and economics is the process of bringing a business to an end and distributing its assets to claimants. It is an event that usually occurs when a company is insolvent, meaning it cannot pay its obligations when they are due....