A partnership has the following balance sheet just before final liquidation is to begin: Liquidation expenses are

Question:

A partnership has the following balance sheet just before final liquidation is to begin:

Liquidation expenses are estimated to be $12,000. The other assets are sold for $40,000. What distribution can be made to the partners?

a. –0– to Art, $1,500 to Raymond, $2,500 to Darby.

b. $1,333 to Art, $1,333 to Raymond, $1,334 to Darby.

c. –0– to Art, $1,200 to Raymond, $2,800 to Darby.

d. $600 to Art, $1,200 to Raymond, $2,200 to Darby.

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial... Distribution
The word "distribution" has several meanings in the financial world, most of them pertaining to the payment of assets from a fund, account, or individual security to an investor or beneficiary. Retirement account distributions are among the most... Liquidation
Liquidation in finance and economics is the process of bringing a business to an end and distributing its assets to claimants. It is an event that usually occurs when a company is insolvent, meaning it cannot pay its obligations when they are due.... Partnership
A legal form of business operation between two or more individuals who share management and profits. A Written agreement between two or more individuals who join as partners to form and carry on a for-profit business. Among other things, it states...