Part A (5 points each for a possible total of 10 points) 1. After several years of business, Abel, Barney, and Cole are liquidating. The following...

Part A

(5 points each for a possible total of 10 points)

1. After several years of business, Abel, Barney, and Cole are liquidating. The

following are post-closing account balances.

Cash 18,000

Inventory 73,000

Other assets 157,000

Accounts Payable 61,000

Abel, Capital 50,000

Barney, Capital 50,000

Cole, Capital 87,000

Noncash assets are sold for $275,000. Profits and losses are shared

equally.

After all liabilities are paid, divide the remaining cash amongst the

partners.

2. The partnership of Brandon and Ryan is being liquidated. All gains and

losses are shared in a 3:1 ratio, respectively. Before liquidation, their

balance sheet balances are as follows:

Cash $10,000

Other Assets 8,000

Liabilities 4,000

Brandon, Capital 7,000

Ryan, Capital 7,000

a. If the Other Assets are sold for $10,000, how much will each partner

receive before paying liabilities and distributing the remaining

assets?

b. If the Other Assets are sold for $8,000, how much will each partner

receive before paying liabilities and distributing remaining assets?