Analyze exercise 12-23 on page 619. Calculate (a) the partnership's gain of loss on realization and (b) how much cash each partner will receive after debts are paid and the firm is liquidated. Show your work.
After closing the accounts on July 1, prior to liquidating the
partnership, the capital ac-
count balances of Gold, Porter, and Sims are $55,000, $45,000, and $20,000, respectively. Cash, noncash assets, and liabilities total $56,000, $96,000, and $32,000, respectively. Between July 1 and July 29, the noncash assets are sold for $90,000, the liabilities are paid, and the remaining cash is distributed to the partners. The partners share net in- come and loss in the ratio of 3:2:1. Prepare a statement of partnership liquidation for the period July 1–29.