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	$	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 of $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?

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

Carney, capital	$	78,000
Pierce, capital		32,400
Menton, capital		61,000
Hoehn, capital		25,400

Which of the following statements is true?

Multiple Choice

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

• The first available $7,400 will go to Hoehn.

• The first available $10,200 will go to Menton.

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