Reference no: EM132589023
Question - The partnership of Anderson, Berry, Hammond, and Winwood is being liquidated. It currently holds cash of $21,000 but no other assets. Liabilities amount to $34,000. The capital balances are
Anderson (40% of profits and losses) $32,000
Berry (20%) 15,000
Hammond (20%) (28,000) (deficit)
Winwood (20%) (32,000) (deficit)
1. a. If both Hammond and Winwood are personally insolvent, how much money must Berry contribute to this partnership?
2. b-1. If only Winwood is personally insolvent, how much money must Hammond contribute?
3. b-2. If only Winwood is personally insolvent, how will Hammond's contribution (funds) be disbursed?
4. c. If only Hammond is personally insolvent, how much money should Anderson receive from the liquidation?
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