A partnership has the following account balances at the date of termination: Cash, $90,000; Noncash Assets, $710,000; Liabilities, $378,000; Alonso, capital (50 percent of profits and losses), $200,000; Mann, capital (30 percent), $135,000; Suzuki, capital (20 percent), $87,000. The following transactions occur during liquidation:
Noncash assets with a book value of $550,000 are sold for $450,000 in cash.
A creditor reduces his claim against the partnership from $120,000 to $110,000, and this amount is paid in cash.
The remaining noncash assets are sold for $130,000 in cash.
The remaining liabilities of $258,000 are paid in full.
Liquidation expenses of $19,000 are paid in cash.
Cash remaining after the above transactions have occurred is distributed to the partners.
Required:
Prepare a statement of partnership liquidation to determine how much cash each partner receives from the liquidation of the partnership.