Problem - The partnership of Anderson, Berry, Hammond, and Winwood is being liquidated. It currently holds cash of $20,000 but no other assets. Liabilities amount to $32,400. The capital balances are
Anderson (30% of profits and losses) - $ 21,600
Berry (30%) - 23,000
Hammond (20%) - (20,000) (deficit)
Winwood (20%) - (37,000) (deficit)
a. If both Hammond and Winwood are personally insolvent, how much money must Berry contribute to this partnership?
b-1. If only Winwood is personally insolvent, how much money must Hammond contribute?
b-2. If only Winwood is personally insolvent, how will Hammond's contribution (funds) be disbursed?
c. If only Hammond is personally insolvent, how much money should Anderson receive from the liquidation?