Reference no: EM133168535

Question - A, B, and C are partners in a partnership and share profits and losses 40%, 40% and 20%, respectively. The partners have agreed to liquidate the partnership and anticipate that liquidation expenses will total $17,750. Prior to the liquidation, the partnership balance sheet reflects the following book values:

Cash $25,000

Noncash assets 200,000

Note payable to Partner B 12,000

Other Liabilities 165,000

Captial, A 40,000

Captial, B 18,000

Capital deficit, C (10,000)

Required - Assuming that the actual liquidation expenses are $20,000 and that noncash assets are sold for $160,000, determine the partner and amount who will receive the final payout. Partner C has net personal assets of $10,000.