A local partnership has only two assets (cash of $10,000 and land with a cost of $35,000).

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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 partner share profits and losses as follows. All partners are insolvent.

a. If the land is sold for $25,000, how much cash does each partner receive in a final settlement?

b. If the land is sold for $15000, how much cash does each partner receive in a final settlement?

c. If the land is sold for $5,000, how much cash does each partner receive in a final settlement?

Related Book For answer-question

Advanced Accounting

ISBN: 978-1305084858

12th edition

Authors: Paul M. Fischer, William J. Tayler, Rita H. Cheng

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Posted Date: Jun 27, 2019 07:58 AM

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A local partnership has only two assets (cash of $10,000 and land with a cost of $35,000).

Question:

Brown, capital (40%) $25,000 Fish, capital (30%) Stone, capital (30%) 15,000 5,000 Brown, capital (40%) $25,000 Fish, capital (30%) Stone, capital (30%) 15,000 5,000

Expert Answer:

a Brown gets 21000 Fish ge... View the full answer

Advanced Accounting

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