Reference no: EM132350882

Question - 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

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

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

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