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Question - The Amos, Billings, and Cleaver partnership had two assets: (1) cash of $40,000 and (2) an investment with book value of $110,000. The ratio for sharing profits and losses is 2:1:1. The balance in the capital accounts were:
Amos, capital: $45,000
Billings, capital: $75,000
Cleaver, capital: $30,000
Required: If the investment was sold for $80,000, how much cash would each partner have received?
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