4. (TCO G) The partnership of Nurr, Cleamons and Kelly was insolvent, as was Cleamons personally. The partnership had begun liquidating its assets and Cleamons' capital account had a debit balance. How would the claim of Nurr and Kelly against Cleamons be ranked in comparison with the claims of Cleamons' other creditors? (Points : 2) It ranks lower in priority than Cleamons' personal creditors and the creditors of the partnership It ranks equal in priority with the claims of Cleamons' personal creditors It ranks lower in priority than Cleamons' personal creditors but higher in priority than the creditors of the partnership It ranks higher in priority than Cleamons' personal creditors and the creditors of the partnership It ranks higher in priority than Cleamons' personal creditors but lower in priority than the creditors of the partnership 6. (TCO G) A local partnership was considering the possibility of liquidation since one of the partners (Ding) was insolvent. Capital balances at that time were as follows. Profits and losses were divided on a 4:2:2:2 basis, respectively. Ding's creditors filed a $25,000 claim against the partnership's assets. At that time, the partnership held assets reported at $360,000 and liabilities of $120,000. If the assets could be sold for $228,000, what is the minimum amount that Ding's creditors would have received? (Points : 2) $36,000 $0 $2,500 $38,720 $67,250 7. (TCO G) A local partnership has assets of cash of $13,000 and land worth $70,000. All liabilities have been paid and the partners are all insolvent. The partners capital accounts are as follows Roberts, $50,000, Ferry, $30,000 and Mones 3,000. The partners share profits and losses 5:3:2. If the land is sold for $45,000, how much cash will Mones receive in the final settlement? (Points : 2) $0 $1,500 $3,000 $21,750 $36,250 9. (TCO G) The Abrams, Bartle and Creighton partnership began the process of liquidation with the following balance sheet: Abrams, Bartle and Creighton share profits and losses in a ratio of 3:2:5. Liquidation expenses are expected to be $12,000. The non-cash assets were sold for $134,000. Which partner(s) would have had to contribute assets to the partnership to cover a deficit in his or her capital account? (Points : 2) Abrams Bartle Creighton Abrams and Creighton Abrams and Bartle 10. (TCO G) Gonda, Herron and Morse is considering possible liquidation because Morse is insolvent. The partners have the following capital balances: $60,000, $70,000 and $40,000, respectively and share profits and losses 30%, 45% and 25%, respectively. The partnership has $200,000 in assets that can be sold for $150,000. What is the minimum that Morse's creditors would receive if they have filed a claim for $50,000? (Points : 2) $0 $27,500 $45,000 47,500 50