The following balance sheet is for a local partnership in which the partners have become very unhappy with each other.

To avoid more conflict, the partners have decided to cease operations and sell all assets. Using this information, answer the following questions. Each question should be viewed as an independent situation related to the partnership?s liquidation.

a. The $10,000 cash that exceeds the partnership liabilities is to be disbursed immediately. If profits and losses are allocated to Adams, Baker, Carvil, and Dobbs on a 2 : 3 : 3 : 2 basis, respectively, how will the $10,000 be divided? If a partner should receive none, be sure to mark a zero in their field. Blank will not be interpreted to be the same answer as zero.

b. The $10,000 cash that exceeds the partnership liabilities is to be disbursed immediately. If profits and losses are allocated on a 2 : 2 : 3 : 3 basis, respectively, how will the $10,000 be divided? If a partner should receive none, be sure to mark a zero in their field. Blank will not be interpreted to be the same answer as zero.

c. The building is immediately sold for $91,000 to give total cash of $140,000. The liabilities are then paid, leaving cash balance of $101,000. This cash is to be distributed to the partners. How much of this money will each partner receive if profits and losses are allocated to Adams, Baker, Carvil, and Dobbs on a 1 : 3 : 3 : 3 basis, respectively? If a partner should receive none, be sure to mark a zero in their field. Blank will not be interpreted to be the same answer as zero.

d. Assume that profits and losses are allocated to Adams, Baker, Carvil, and Dobbs on a 1 : 3 : 4 : 2 bases, respectively. How much money must the firm receive from selling the land and building to ensure that Carvil receives a portion?

Cash Land Building Total assets $ 49,000 175,000 165,000 $389,000 Liabilities Adams, capital Baker, capital Carvel, capital Dobbs, capital Total liabilities and capital $ 39,000 108,500 45,000 78,000 118,500 $389,000