Problem
The Keller, Long, and Mason partnership had the following balance sheet just before entering liquidation:
|
Cash
|
$115,000
|
Liabilities
|
$45,000
|
|
Noncash assets
|
230,000
|
Keller, Capital
|
100,000
|
|
|
|
Long, Capital
|
70,000
|
|
|
|
Mason, Capital
|
130,000
|
|
Total
|
$345,000
|
Total
|
$345,000
|
Keller, Long, and Mason share profits and losses in a ratio of 2:4:4.
Assuming noncash assets were sold for $70,000 and liquidation expenses in the amount of $18,500 were incurred, how much will each partner receive in the liquidation?