The Keaton, Lewis, and Meador partnership had the following balance sheet just before entering liquidation:

Cash	$100,000	Liabilities	$40,000
Noncash assets	$210,000	Keaton, Capital	90,000
		Lewis, Capital	60,000
		Meador, Capital	120,000
Total	310,000	Total	$310,000

Keaton, Lewis, and Meador share profits and losses in a ratio of 2:4:4.

Assume that noncash assets were sold for $58,000 and liquidation expenses in the amount of $10,000 were incurred. If Lewis was personally insolvent and could not contribute any assets to the partnership, and Keaton and Meador were both solvent, what amount of cash would Keaton receive from the distribution of partnership assets?

• $0.
• $56,000.
• $57,600.
• $59,600.
• $60,000.

Answer rating: 100% (QA)

b 56000 Partners Cash Noncash Assets Liabilities Keaton Lewis Meador Balances 100000 2... View the full answer