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

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





  Cash$  41,000  
  Liabilities$  31,000  
  Land135,000  
  Adams, capital84,000  
  Building125,000  
  Baker, capital30,000  



  Carvil, capital62,000  



  Dobbs, capital94,000  





       Total assets$301,000  
       Total liabilities and capital$301,000  






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.
a.The $10,000 cash that exceeds the partnership liabilities is to be disbursed immediately. If profits and losses are allocated to Adams, Baker, Carvil, and Dobbs on a 2:3:3:2 basis, respectively, how will the $10,000 be divided?
Adams    0
Baker0
Carvil0
Dobbs$10,000
b.The $10,000 cash that exceeds the partnership liabilities is to be disbursed immediately. If profits and losses are allocated on a 2:2:3:3 basis, respectively, how will the $10,000 be divided?
Adams                                 $10,000
Baker0
Carvil0
Dobbs0
c.The building is immediately sold for $71,000 to give total cash of $112,000. The liabilities are then paid, leaving a cash balance of $81,000. 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? (Do not round intermediate calculations.)
Adams          
Baker
Carvil
Dobbs
d.Assume that profits and losses are allocated to Adams, Baker, Carvil, and Dobbs on a 1:3:4:2 basis, respectively. How much money must the firm receive from selling the land and building to ensure that Carvil receives a portion? (Do not round intermediate calculations.)
Minimum amount of sale value
 
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