Question
The Keaton, Lewis, and Meador partnership had the following balance sheet just before entering liquidation: Cash 10,000 non cash assets 300000 total 310,000 liability 130000
The Keaton, Lewis, and Meador partnership had the following balance sheet just before entering liquidation: Cash 10,000 non cash assets 300000 total 310,000 liability 130000 keaton-60,000 lewis-40,000 meador-80,000 total:310000 Keaton, Lewis, and Meador share profits and losses in a ratio of 2:4:4. Noncash assets were sold for $180,000. Liquidation expenses were $10,000. Assume that Lewis was personally insolvent and could not contribute any assets to the partnership, while Keaton and Meador were both solvent. What amount of cash would Keaton have received from the distribution of partnership assets? the answer should be 30,000 please explain and show your work,I spent long time on it but stil do not understand. Thank you!!
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