A local partnership is considering possible liquidation because one of the partners (Bell) is insolvent. Capital balances at the current time are as follows. Profits and losses are divided on a 4:3:2:1 basis, respectively.

Bell, capital	$	83,500
Hardy, capital		69,000
Dennard, capital		16,000
Suddath, capital		93,000

Bells creditors have filed a $34,000 claim against the partnerships assets. The partnership currently holds assets reported at $430,000 and liabilities of $168,500. If the assets can be sold for $255,000, what is the minimum amount that Bells creditors would receive?

rev: 11_14_2016_QC_CS-69776

$5,900.

$0.

$4,000.

$13,500.

Carney, Pierce, Menton, and Hoehn are partners who share profits and losses on a 4:3:2:1 basis, respectively. They are beginning to liquidate the business. At the start of this process, capital balances are as follows:

Carney, capital	$	69,000
Pierce, capital		29,700
Menton, capital		52,000
Hoehn, capital		22,700

8.

Which of the following statements is true?

Carney will collect a portion of any available cash before Hoehn receives money.

Carney will be the last partner to receive any available cash.

The first available $4,700 will go to Hoehn.

The first available $6,600 will go to Menton.