Question: Problem: Installment Liquidation On November 10, 2016, Ed, Fin, and Jim, partners had capital account balances of $20,000, $25,000 and $9,000 respectively, and share profits

Problem: Installment Liquidation

On November 10, 2016, Ed, Fin, and Jim, partners had capital account balances of $20,000, $25,000 and $9,000 respectively, and share profits or losses in a 4:2:1 ratio.

Required:

1. Prepare the cash priority program assuming that liabilities totaled $20,000 on Nov. 10, 2016

2. If Ed received $4000, how much cash was paid to all partners?

3. If Ed received $13000, how much did Jim get?

4. if Fin received only $11000 as a result of the liquidation, what was the loss on realization of partnership assets (assuming that no partner invested any additional assets in the partnership)?

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