Problem
The partnership of Brandon and Ryan is being liquidated. All gains andlosses are shared in a 3:1 ratio, respectively. Before liquidation, theirbalance sheet balances are as follows: Cash $10,000 Other Assets 8,000 Liabilities 4,000Brandon, Capital 7,000 Ryan, Capital 7,000.
a. If the Other Assets are sold for $10,000, how much will each partnerreceive before paying liabilities and distributing the remainingassets?
b. If the Other Assets are sold for $8,000, how much will each partnerreceive before paying liabilities and distributing remaining assets?