The following balance sheet is for a local partnership in which the partners have become very unhappy with each other.

Cash $53000 Liabilities $43000

Land 195000 Adams, capital 124500

Building 185000 Baker capital 45000

Carville capital 86000

Dobbs capital 134500

Total assets 433,000 Total liabilities and capital 433,000

To avoid more conflict, the partners have decided to cease operations and sell all assets. Using this information, answer the following questions. Each question should viewed as an independent situation related to the partnership's liquidation.

A. The $10,000case that exceeds the partnership liabilities is to be disbursed immediately. If profits and losses are allocated to Adams, Baker, Carville, and Dobbs on a 2:3:3:2 basis, respectively, how will the $10,000 be divided?

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?