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A local partnership is liquidating and has only two assets (cash of $10,000 and land with a cost of $35,000). All partnership liabilities have been
A local partnership is liquidating and has only two assets (cash of $10,000 and land with a cost of $35,000). All partnership liabilities have been paid. All partners are personally insolvent. The partners have capital balances and share profits and losses as follows.
Brown, capital (40%) | $ | 25,000 |
Fish, capital (30%) | 15,000 | |
Stone, capital (30%) | 5,000 | |
- If the land is sold for $25,000, how much cash does each partner receive in a final settlement?
- If the land is sold for $15,000, how much cash does each partner receive in a final settlement?
- If the land is sold for $5,000, how much cash does each partner receive in a final settlement?
(Do not round intermediate calculations. Round the final answers to nearest dollar amounts.)
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