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

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A partnership currently holds three assets: cash, $10,000; land, $35,000; and a building, $50,000. The partnership has no liabilities. The partners anticipate that expenses required to liquidate their partnership will amount to $5,000. Capital balances are

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 percent), Ball (30 percent), Eaton (20 percent), and Lake (20 percent). If a preliminary distribution of cash is to be made, what is the amount of safe payment that can be made to each partner?

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Related Book For  answer-question

Advanced Accounting

ISBN: 978-1259444951

13th edition

Authors: Joe Ben Hoyle, Thomas Schaefer, Timothy Doupni

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