1. The partnership of Mick, Keith, and Charlie has been dissolved and is in the process of liquidation. On July 1, 2017, just before the second cash distribution, the assets and equities of the partnership along with residual profit sharing ratios were as follows:

   Assets	Liabilities & Equities
   Cash	$ 200,000	Liabilities	$ 150,000
   Receivables-net	50,000	Mick, Capital 50%	100,000
   Inventories	150,000	Keith, Capital 30%	175,000
   Equipment-net	100,000	Charlie, Capital 20%	75,000
   Total assets	$ 500,000	Total Lia & Equity	500,000

   Assume that the available cash is distributed immediately, except for a $25,000 contingency fund that is withheld pending complete liquidation of the partnership. How much cash should be paid to each of the partners?

   1. Mick, $87,500; Keith, $52,500; Charlie, $35,000

   2. Mick 12,500; Keith , 7,500; Charlie, 10,000

   3. Mick - 0 -; Keith, 25,000; Charlie, - 0 -

   4. Mick - 0 -; Keith, 15,000; Charlie, 10,000