Fundamentals of Advanced Accounting 5th Edition by Joe Ben Hoyle,Thomas Schaefer,Timothy Doupnik

Exercise 23

A local partnership has only two assets (cash of $10,000 and land with a cost of $35,000). All liabilities have been paid and the following capital balances are currently being recorded. The partners share profits and losses as follows. All partners are insolvent.

a. If the land is sold for $25,000, how much cash does each partner receive in a final settlement
b. If the land is sold for $15,000, how much cash does each partner receive in a final settlement
c. If the land is sold for $5,000, how much cash does each partner receive in a final settlement