Manley and Singh are partners, sharing gains and losses equally. They decide to terminate their partnership. Prior to realization, their capital balances are $20,000 and $15,000, respectively. After all noncash assets are sold and all liabilities are paid, there is a cash balance of $19,000.
a. What is the amount of a gain or loss on realization?
b. How should the gain or loss be divided between Manley and Singh?
c. How should the cash be divided between Manley and Singh?