Advanced Accounting 11th Edition by Paul Fischer,William Tayler, Rita Cheng

Exercise 16

Installment liquidation, schedule of safe payments. A real estate partnership had the following condensed balance sheet prior to liquidation:
The percentages in parentheses after the partners' capital balances represent their respective interests in profits and losses. The following situations are independent of each other unless otherwise stated:
1. If assets with a book value of $30,000 were sold for $20,000, how much of the available cash could be distributed to Partner A?
2. If assets with a book value of $60,000 were sold for $70,000, how much of the available cash could be distributed to Partner A?
3. Assume assets with a book value of $70,000 were sold for $50,000 and that all available cash was distributed. For what amount would the remaining assets have to be sold in order for Partner B to receive a total of $79,000 cash from all liquidation activities?