Reference no: EM132755247

A, B and C formed a partnership. Their contributions are as follows:

                               A                     B               C

Cash              50,000            40,000     140,000

Equipment 150,000

Totals           50,000                190,000      140,000

Additional information:

• Although C has contributed the most cash to the partnership, he did not have the full amount of ?140,000 available and was forced to borrow ?40,000. The partners agreed that half of the amount borrowed shall be assumed by the partnership.
• The equipment contributed by B has an unpaid mortgage of ?20,000, the repayment of which is not assumed by the partnership.
• The partners agreed to equalize their interests. Cash settlements among the partners are to be made outside the partnership.

Problem 1: Which partner(s) shall receive cash payment from the other partner(s)?