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Compute the distribution of income and the changes in the partners' capital accounts during the year 4. On December 1, 20X9, the parthers of Tim,

Compute the distribution of income and the changes in the partners' capital accounts during the year

4. On December 1, 20X9, the parthers of Tim, Williams, and Levin, who share profits and losses in the ratio of 4:4:2, decided to liquidate their partnership. On this date the partnership condensed balance sheet was as follows:

CASH $100,000 ACCT PAYABLE $390,000
Acct Receivable $200,000 Note Payable Levin $30,000
Inventory $400,000 Tim Capital $100,000
Goodwill $20,000 Williams Capital $120,000
Levin Capital $80,000
Total $720,000 Total $720,000

On December 1 1, 20X9 two events occurred; first, the cash sale of inventory with a book value of $200,000 was sold for $140,000. Second, receivables of $100,000 were collected and $10,000 were written off. Safe installment payments to the partners were made on the same date. How much cash should be distributed to each partner?

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