REFERENCE: 10-03
the Henry,Isaac,and Jacobs Partnership Was About to Enter

REFERENCE: 10-03
The Henry,Isaac,and Jacobs partnership was about to enter liquidation with the following account balances: $\begin{array}{lrlr}\text { Cash } & \$ 90,000 & \text { Liabilities } & \$ 60,000 \\\text { Noncash assets } & 300,000 & \text { Henry, capital } & 80,000 \\& & \text { Isaac, capital } & 110,000 \\& & \text { Jacobs, capital } & 140,000 \\\text { Total } & \$ 390,000 & \text { Total } & \$ 390,000\end{array}$ Estimated expenses of liquidation were $5,000.Henry,Isaac,and Jacobs shared profits and losses in a ratio of 2:4:4.
-Before liquidating any assets,the partners determined the amount of cash for safe payments and distributed it.The noncash assets were then sold for $120,000.The liquidation expenses of $5,000 were paid prior to the sale of noncashassets.How would the $120,000 be distributed to the partners? (Hint: Either a predistribution plan or a schedule of safe capital balances would be appropriate for solving this item. )
$\begin{array} { ccc } & &\text { Henry } & \text { Isaac } && \text { Jacobs } \\\end{array}$
A) $\begin{array} { ccc } & \$ 33,000 & \$ 36,000 & \$ 51,000 \\\end{array}$
B) $\begin{array} { ccc } & \$ 28,000 & \$ 36,000 & \$ 56,000 \\\end{array}$
C) $\begin{array} { ccc } & \$ 29,333 & \$ 32,000 & \$ 58,667 \\\end{array}$
D) $\begin{array} { ccc } & \$ 24,000 & \$ 48,000 & \$ 48,000 \\\end{array}$
E) $\begin{array} { ccc } & \$ 38,000 & \$ 26,000 & \$ 56,000 \\\end{array}$