Question
Before liquidation, partners Clinton, Biden, and Trump have capital balances $300,000; $300,000 and $400,000, respectively, and they share profits and losses in the ratio 4:3:3.
Before liquidation, partners Clinton, Biden, and Trump have capital balances $300,000; $300,000 and $400,000, respectively, and they share profits and losses in the ratio 4:3:3. After realizing all but one of its non-cash assets and playing all amount due to all partnership creditors, the partnership is left with a piece of land which was acquired 20 years earlier at $400,000 cost, carrying amount $1,000,000 based on 2015 fair values and $1,600,000 current prices. Currently, they are waiting for prospective buyer who is willing to pay for the lot at $1,700,000. What should be the capital balance of Clinton before realization of the lot?
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