Reference no: EM132550333

Question - A partnership held three assets:

Cash $59,000

Land $45,000

Building $64,000

And liabilities were $30,000

The partners decided to dissolve the business and anticipated that expenses required to liquidate their partnership would amount to $ 5,000

Capital balances were as follows:

King, capital $24,000

Murphy, capital 30,000

Madison, capital 48,000

Pond, capital 36,000

The partners shared profits and losses 10:20:30:40 respectively.

The cash on hand was used to pay the liabilities. Any remain;ing cash in excess of the amount needed for anticipated liquidation expenses was immediately distributed to the partners.

Required -

a. What is the total amount of cash that was immediately available to be distributed to the partners?

b. The cash (in item a.) was distributed to each partner in a single payment. Show the total payment amount to each partner. (Show the amount of the single check that was written to each partner.) Support your answer with a predistribution plan (or schedule).