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The following balance sheet is for a local partnership in which the partners have become very unhappy with each other. Cash 40,000 Liabilities 30,000 Land
The following balance sheet is for a local partnership in which the partners have become very unhappy with each other.
Cash | 40,000 | Liabilities | 30,000 | |
Land | 130,000 | Adams, Capital | 80,000 | |
Building | 120,000 | Baker, Capital | 30,000 | |
Carvil, Capital | 60,000 | |||
Dobbs, Capital | 90,000 | |||
Total Assets | 290,000 | Total Liab & Cap | 290,000 | |
To avoid more conflict, the partners have decided to cease operations and sell all assets. Using this information, answer the following question.
Please help me with the following question:
b. The $ 10,000 cash that exceeds the partnership liabilities is to be disbursed immediately. If profits and losses are allocated on a 2: 2: 3: 3 basis, respectively, how will the $ 10,000 be divided?
Show your work.
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