Problem 3. A partner who receives 50% of the profits of the company was distributed P240,000 cash in partial settlement of his interest. That partners interest in the partnership amounted to P800,000 after his share in the loss on realization of some non-cash assets and after his share in the liquidation expenses paid by the partnership.

1. How much was maximum possible loss of the partnership?
2. If the partnership had unsettled liability to outsiders in the amount of P500,000, and it also had unsold noncash assets with book value of P1,000,000, then how much was anticipated expenses of the partnership, if any?
3. If the partnership had unsettled liability to outsiders in the amount of P500,000, and it also had unsold noncash assets with book value of P1,000,000, then how much cash should be withheld by the partnership, if any?

Problem 4. Intel Company is being liquidated. The trustee has determined that the unsecured claims will receive P0.35 on the peso. Advanced Company holds a P1,000,000 mortgage note receivable from Intel Company that is secured by trading securities with P750,000 carrying value having a market value of P820,000.

4. How much will Advanced Company expects to recover from Intel?