Sand, Mell, and Rand are partners who share incomes and losses in a 1:4:5 ratio. After lengthy disagreements among the partners and several unprofitable periods, the partners decided to liquidate the partnership. Before the liquidation, the partnership balance sheet showed Cash $10,000, total -201Cother assets,-201D $106,000; total liabilities, $88,000; Sand, Capital, $1,200; Mell, Capital, $11,700; and Rand, Capital, $15,100. The -201Cother assets-201D were sold for $ 85,000.
Determine the following:
- The gain (or loss) realized on the sale of the assets.
- The balances in the partners-2019 capital accounts after the distribution of this gain or loss to the capital accounts.
- Assume that if any capital deficits exist, they are not made up. How much cash will each of the partners receive in the final liquidation?