After closing the books and prior to liquidating their partnership, Paul and Sam have $14,000...
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After closing the books and prior to liquidating their partnership, Paul and Sam have $14,000 and $6,700 of capital, respectivly. Prior to liquidation, the partnership had no cash and had $700 of liabilities. The other, non-cash assets were sold for $8,000. The partners share income equally.
A.) Calculate the balance of assets prior to realization (selling the assets):
B.) Calculate Paul and Sam's capital balances after the assets are sold:
C.) Calculate the cash distribution to Ryan after settling liabilities, assuming no other transactions take place:
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