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The balance sheet for the Delphine, Xavier, and Olivier partnership follows: Cash $ 69,360 Liabilities $ 46,500 Noncash assets 126,000 Delphine, capital 58,680 Xavier, capital
The balance sheet for the Delphine, Xavier, and Olivier partnership follows:
Cash | $ | 69,360 | Liabilities | $ | 46,500 | |
Noncash assets | 126,000 | Delphine, capital | 58,680 | |||
Xavier, capital | 53,000 | |||||
Olivier, capital | 37,180 | |||||
Total assets | $ | 195,360 | Total liabilities and capital | $ | 195,360 | |
Delphine, Xavier, and Olivier share profits and losses in the ratio of 3:4:3, respectively. The partners have agreed to terminate the business and estimate that $14,600 in liquidation expenses will be incurred.
What is the amount of cash that safely can be paid to partners prior to liquidation of noncash assets?
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Which partner should receive the cash distribution from (a)?
Which partner should receive the cash distribution from (a)?
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