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Unger, Wolf and Zen partnership have agreed to liquidate their partnership. The 3 partners have the following capital balances and profit and loss percentages: Wolf:$120,000
Unger, Wolf and Zen partnership have agreed to liquidate their partnership. The 3 partners have the following capital balances and profit and loss percentages:
Wolf:$120,000 (30%)
Zen:$180,000 (50%)
Unger$100,000 (20%)
Although there are still assets to sell, there is $50,000 of cash that can be immediately distributed, as the partnership has no remaining liabilities. Which partner(s) can receive that money now and how much will each receive. (hint: make a "predistribution plan" to see who gets paid first as cash becomes available).
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