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

Cash $50,000 Liabilities $40,000

land 180,000 Adams Capital 114,000

Building 170,000 Baker capital 42,000

Carvil capital 80,000

Dobbs capital 124,000

Total assets 400,000 Total Liabilities and capital $400,000

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 be viewed as an independent situation related to the partnership liquidation.

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

Adams

Baker

Carvil

Dobbs

b. The $10,000 cash that exceeds the partnership liabilities is to be distributed immediately. If profits and losses are allocated on a 2:2:3:3 basis, respectovely, how will the $10,000 be divided?

c.. The building is immediately sold for $95,000to give total cash of $145,000. The liabilities are then paid leaving a cash balance of $105,000. This cash is to be distributed to the partners. How much of this money will each partner receive if profits and losses are allocated to Adams, Baker, Carvil, and Dobbs on a 1:3:3:3 basis, respectively? (Do not round intermediate calculations).

Adams

Baker

Carvi

Dobbs

d. Assume that profits and losses afre allocated to Adams, Baker, Carvil,and Dobbs on a 1:3:4:2 basis respectively. How much money must the firm receive from selling the land and the building to ensure that Carvil recives a portion? (do not round intermediate calculations).