Assume that a partnership had assets with a book value of $240,000 and a market value of $195,000, outside liabilities of $70,000, loans payable to partner Able of $20,000, and capital balances for partners Able, Baker, and Chapman of $70,000, $30,000, and $50,000. How much would Able receive upon liquidation of the partnership assuming profits and losses are allocated equally?

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11eb11de_92a6_83b9_ad38_5d7f97fe4c9d_TB2014_00 If the partnership raised 195,000 cash with the sale of assets and paid its liabilities of 70,000, it would leave 125,000 cash for the partners, of which Able would receive 75,000, 20,000 for the loan and 55,000 for his capital balance.

Assume That a Partnership Had Assets with a Book Value