The following balance sheet is for a local partnership in

The following balance sheet is for a local partnership in which the partners have become very
unhappy with each other.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?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?c. The building is immediately sold for $70,000 to give total cash of
$110,000. The liabilities are then paid, leaving a cash balance of $80,000. 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?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 aportion? View Solution: The following balance sheet is for a local
partnership in
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