Answered step by step
Verified Expert Solution
Question
1 Approved Answer
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.
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 | $ | 72,500 |
Hardy, capital | 65,000 | |
Dennard, capital | 11,000 | |
Suddath, capital | 89,000 | |
Bells creditors have filed a $30,000 claim against the partnerships assets. The partnership currently holds assets of $390,000 and liabilities of $152,500. If the assets can be sold for $235,000, what is the minimum amount that Bells creditors would receive?
Multiple Choice
a.)$10,500
b.)$2,500
c.)$0
d.)$500
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started