The partnership of Hendrick, Mitchum, and Redding has thefollowing account balances:
| | | | | | | | |
| Cash | $ | 61,000 | | | Liabilities | $ | 30,000 | |
| Noncash assets | | 160,000 | | | Hendrick, capital | | 150,000 | |
| | | | | Mitchum, capital | | 95,000 | |
| | | | | Redding, capital | | (54,000 | ) |
|
This partnership is being liquidated. Hendrick and Mitchum areeach entitled to 40 percent of all profits and losses with theremaining 20 percent going to Redding.
What is the maximum amount that Redding might have to contributeto this partnership because of the deficit capital balance?
How should the $31,000 cash that is presently available inexcess of liabilities be distributed?
If the noncash assets are sold for a total of $75,000, what isthe minimum amount of cash that Hendrick could receive?
