Distribution of cash upon liquidation

Hewitt and Patel are partners, sharing gains and losses equally. They decide to terminate their partnership.

Prior to realization, their capital balances are $$24,000$ and $$16,000,$ respectively. After all noncash assets are

sold and all liabilities are paid, there is a cash balance of $$30,000.$

This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the

required analysis, and input your answers in the questions below.

Open spreadsheet

a$.$ What is the amount of a gain or loss on realization?

b$.$ How should the gain or loss be divided between Hewitt and Patel?

Hewitt

$x$$$,x$

$x,x$

Patel

c$.$ How should the cash be divided between Hewitt and Patel? If an amount is zero, enter $"0".$

Hewitt and Patel

Distribution of Cash