Part 1: Capital balances for Hold and Held are $225,000 and $350,000 immediately before liquidation. Noncash assets with a book value of $500,000 are sold for $560,000 cash. Total liabilities of $270,000 are paid by the partnership. The amount of cash available for distribution to the partners is:

a) $635,000

b) $905,000

c) $75,000

d) $560,000

Part 2: Ivey and Balzac had a partnership that distributed profits in a ratio of 1:3 respectively. They have decided to liquidate the partnership. Prior to liquidation, the partnership had Cash of $50,000, Inventory of $75,000, Equipment (net) of $235,000, and no payables. Partner capital balances were:

Ivey: $100,000 Balzac: $260,000

The inventory was sold for $59,000 and the equipment was sold for $243,000. After the assets were sold, what was Ivey's and Balzac's capital balance?

a) $90,000 and $176,000 respectively

b) $106,000 and $254,000 respectively

c) $ 98,000 and $278,000 respectively

d) $98,000 and $254,000 respectively