As of January 1, 2018, the partnership of Canton, Yulls, and Garr had the following account balances and percentages for the sharing of profits and losses: Cash$80,000 Noncash assets 205,000 Liabilities 47,000 Canton, capital (30%) 138,000 Yulls, capital (40%) 119,500 Garr, capital (30%) (19,500)??The partnership incurred losses in recent years and decided to liquidate. The liquidation expenses were expected to be $10,000.?How much of the existing cash balance could be distributed safely to partners at this time?
What will be an ideal response?
The amount of cash that could be distributed to partners at this time = current cash balance $80,000 - liabilities $47,000 - estimate for liquidation expenses $10,000 = $23,000.
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