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Sammy, Davis, and Junior are in the process of liquidating their partnership. They share profits and losses in a 4:3:1 ratio. Following is the current
Sammy, Davis, and Junior are in the process of liquidating their partnership. They share profits and losses in a 4:3:1 ratio. Following is the current balance sheet for the partnership:
Cash | $290,000 | Liabilities | $65,000 |
Other assets | 335,000 | Sammy, capital | 100,000 |
Davis, capital | 400,000 | ||
Junior, capital | 60,000 | ||
Total assets | $625,000 | Total liabilities and capital | $625,000 |
If the other assets are sold for $320,000 calculate the amount that will be received by each of the partners upon the liquidation of the partnership.
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