As of January 1, 2018, the partnership of Canton, Yulls, and Garr had the following account balances and percentages for the sharing of profits and losses:

Cash	$ 80,000
Noncash assets	205,000
Liabilities	47,000
Canton, Capital (30%)	138,000
Yulls, Capital (40%)	119,500
Garr, Capital (30%)	(19,500)

The partnership incurred losses in recent years and decided to liquidate. The liquidation expenses were expected to be $10,000.

1. How much cash should each partner receive at this time, pursuant to a proposed schedule of liquidation?
2. If the noncash assets are sold for $105,000, what would be the maximum amount of cash that Canton could expect to receive?

Answer rating: 100% (QA)

Answer 1 To determine the amount to be distributed to partners assuming maximu... View the full answer