Reference no: EM132463241

A local partnership is liquidating and has only two assets (cash of $10,000 and land with a cost of $35,000). All partnership liabilities have been paid. All partners are personally insolvent. The partners have capital balances and share profits and losses as follows.

Brown,	capital	(40%)	$25,000
Fish,	capital	(30%)	15,000
Stone,	capital	(30%)	5,000

Question a. If the land is sold for $25,000, how much cash does each partner receive in a final settlement?

Question b. If the land is sold for $15,000, how much cash does each partner receive in a final settlement?

Question c. If the land is sold for $5,000, how much cash does each partner receive in a final settlement?

		Brown	Fish                                  Stone
a.	Cash distribution	. .	.
b.	Cash distribution		.	.
c.	Cash distribution		' .                                                                                                                                    .