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Following is a series of independent cases. In each situation, indicate the cash distribution to be made to partners at the end of the liquidation process. Unless otherwise stated, assume that all solvent partners will reimburse the partnership for their deficit capital balances. Part A The Buarque, Monte, and Vinicius partnership reports the following accounts. Vinicius is personally insolvent and can contribute only an additional $9,000 to the partnership. The firm sells the noncash assets for $120,000; it will use $15,000 of this amount to pay liquidation expenses. All three of these partners are personally insolvent. Part C Use the same information as in Part B, but assume that the profits and losses are split 2:4:4 to Drawdy, Langston, and Pearl, respectively, and that liquidation expenses are only $6,000. Part D Following the liquidation of all noncash assets, the partnership of Krups, Lindau, Riedel, and Schnee has the following account balances. Krups is personally insolvent.
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