How much of the money will each partner receive

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The following balance sheet is for a local partnership in which the partners have become very unhappy with each other.

Cash$59,000

Liabilities$49,000

Land 225,000

Adams, capital 148,500

Building 215,000

Baker, capital 45,000

Carvil, capital 98,000

Dobbs, capital 158,500

Total assets$499,000

Total liabilities and capital$499,000

To avoid more conflict, the partners have decided to cease operations and sell all assets. Using this information, answer the following questions. Each question should be viewed as an independent situation related to the partnership's liquidation.

Question 1: The building is immediately sold for $122,000 to give total cash of $181,000. The liabilities are then paid, leaving a cash balance of $132,000. This cash is to be distributed to the partners. How much of this money will each partner receive if profits and losses are allocated to Adams, Baker, Carvil, and Dobbs on a 1:3:3:3 basis, respectively?

Reference no: EM132796325

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