Chapter 16, Practice Question 03 Shrek, Donkey, and Fiona are partners in SDF and share profits and losses in the ratio of 5:3:2, respectively. The partnership has cash of $10,000 and noncash assets of $90,000 when they decide to liquidate. Liabirities at the time of liquidation are $40,000, including a note payable to Fiona of $5,000. The partner capital accounts are Shrek $40,000, Donkey $ 15,000 and Fiona $5,000. The non-cash assets of the partnership were sold for $26,000. The liabilities other than the note payable to Fiona are paid. Fiona is personally insolvent. Shrek and Donkey are not insolvent. Under the circumstances: Shrek will receive a distribution in liquidation of $8,000. O Fiona will be required to contribute $2,800 to the partnership. Shrek will receive a distribution in liquidation of $6,250. Donkey will be required to contribute $4,200 to the partnership