Following is a series of independent cases. In each situation, indicate the cash distribution to be made to partners at the end of the liquidation process. Unless otherwise stated, assume that all solvent partners will reimburse the partnership for their deficit capital balances.

Part A

The Buarque, Monte, and Vinicius partnership reports the following accounts. Vinicius is personally insolvent and can contribute only an additional $9,000 to the partnership.

Cash $130,000 Liabilities 35,000 Monte, loan 20,000 Buarque, capital (50% of profits and losses) 50,000 Monte, capital (25%) 40,000 Vinicius, capital (25%) (15,000) (deficit)

Part B

Drawdy, Langston, and Pearl operate a local accounting firm as a partnership. After working together for several years, they have decided to liquidate the partnerships property

. The partners have prepared the following balance sheet:

Cash $20,000 Liabilities $40,000 Drawdy, loan 5,000 Langston, loan 8,000 Noncash assets 150,000 Drawdy, capital (40%) 65,000 Langston, capital (30%) 50,000 Pearl, capital (30%) 12,000 Total assets $175,000 Total liabilities and capital $175,000

The firm sells the noncash assets for $120,000; it will use $15,000 of this amount to pay liquidation expenses. All three of these partners are personally insolvent.

Part C

Use the same information as in Part B, but assume that the profits and losses are split 2:4:4 to Drawdy, Langston, and Pearl, respectively, and that liquidation expenses are only $6,000.

Part D

Following the liquidation of all noncash assets, the partnership of Krups, Lindau, Riedel, and Schnee has the following account balances. Krups is personally insolvent.

Liabilities $9,000 Krups, loan 6,000 Krups, capital (30% of profits and losses) (20,000) deficit Lindau, capital (30%) (30,000) deficit Riedel, capital (20%) 15,000 Schnee, capital (20%) 20,000