Question
A partnership is considering possible liquidation because one of the partners (Bell) is personally insolvent. Profits and losses are divided on a 4:3:2:1 basis, respectively.Capital
A partnership is considering possible liquidation because one of the partners (Bell) is personally insolvent. Profits and losses are divided on a 4:3:2:1 basis, respectively.Capital balances at the current time are
Bell, capital $113,500
Hardy, capital$94,000
Dennard, capital$9,000
Suddath, capital$105,000
Bell's creditors have filed a $46,000 claim against the partnership's assets. The partnership currently holds assets of $550,000 and liabilities of $228,500. If the assets can be sold for $315,000, what is the minimum amount that Bell's creditors would receive?
Note to Tutor I am having issues finding the potential loss distributed in 4:3:2:1
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