Pitt and Leon are partners, sharing gains and losses equally. They decide to terminate their partnership. Prior to realization, their capital balances are $15,000 and $20,000, respectively. After all noncash assets are sold and all liabilities are paid, there is a cash balance of $24,000.
a. What is the amount of a gain or loss on realization?
b. How should the gain or loss be divided between Pitt and Leon?
c. How should the cash be divided between Pitt and Leon?
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