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

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.

Same question as above, but assume an unforeseen loss of $90,000 is incurred and must be paid off by the partnership before it liquidates. Further assume that any partner with a capital deficit refuses to cover it.

How much cash should be distributed to David?