AFAR 2 – Partnership Liquidation

Problem 1: After incurring losses resulting from very unprofitable operations, the GKW partnership decided to liquidate when the
partners’ capital balance was: G- 80,000 (40%); K- 130,000 (40%); W- 96,000 (20%)
The non-cash assets were sold in installment. Available cash were distributed to partners in every sale of non-cash asset. After the
second sale of non-cash assets, the partners received the same amount of cash in the distribution and from the third sale of non-
cash asset, cash available for distribution amounts to 28,000 and unsold non-cash assets has book value of 12,500. Using cash
priority program, what amount did W received in the third installment of cash?

(28,000 x 20% = 5,600)