Distribution of Cash Upon Liquidation

Pryor and Lester are partners, sharing gains and losses equally. They decide to terminate their partnership. Prior to realization, their capital balances are $12,000 and $8,000, respectively. After all noncash assets are sold and all liabilities are paid, there is a cash balance of $15,000.

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

Gain or Loss

Amount	$

b. How should the gain or loss be divided between Pryor and Lester?

Pryor Gain or loss and amount

Lester Gain or loss and amount c ) How should the cash be divided between Pryor and Lester? If an amount is zero, enter "0".