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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 | $ | 55,000 |
Hardy, capital | 58,000 | |
Dennard, capital | 15,000 | |
Suddath, capital | 82,000 | |
Bells creditors have filed a $23,000 claim against the partnerships assets. The partnership currently holds assets of $320,000 and liabilities of $110,000. If the assets can be sold for $200,000, what is the minimum amount that Bells creditors would receive?
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