A partnership is finished and needs to be liquidated. The balance sheet is as follows.

Cash 20,000 Payables 40,000

Inventory 40,000 Capital Tammy 100,000

PP&E 120,000 Capital Jean 70,000

Intangibles 60,000 Capital David 30,000

Total assets 240,000 Total L+E 240,000

The profit/loss percentages are 60%/30%/10% for Tammy/Jean/David. Liquidation costs are expected to be $3,000.

1.

The inventory is sold off at a 29% discount. The PPE is sold for a $6179 loss. The intangibles cannot be sold at any price. Actual liquidation expenses are $3665.

How much cash should be distributed to David?

2.

The inventory is sold off at a 29% discount. The PPE is sold for a $6179 loss. The intangibles cannot be sold at any price. Actual liquidation expenses are $3665.

How much cash should be distributed to David?