on january 15 2006 the first cash sale of other assets with a carrying amount of 150 606468
On January 1, 2006, the partners of Cobb, Davis, and Eddy, who share profits and losses in the ratio of 5:3:2, respectively, decided to liquidate their partnership. On this date the partnership condensed balance sheet was as follows:
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Assets |
|
Cash |
$ 50,000 |
Other assets |
250,000 |
$300,000 |
|
Liabilities and Capital |
|
Liabilities |
$ 60,000 |
Cobb, capital |
80,000 |
Davis, capital |
90,000 |
Eddy, capital |
70,000 |
$300,000 |
On January 15, 2006, the first cash sale of other assets with a carrying amount of $150,000 realized $120,000. Safe installment payments to the partners were made the same date. How much cash should be distributed to each partner?
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Cobb |
Davis |
Eddy |
|
a. |
$15,000 |
$51,000 |
$44,000 |
b. |
$40,000 |
$45,000 |
$35,000 |
c. |
$55,000 |
$33,000 |
$22,000 |
d. |
$60,000 |
$36,000 |
$24,000 |