Bill, Page, Larry, and Scott have decided to terminate their partnership. The partnership's balance sheet at the time they decide to wind up is as follows:

Cash	$100,000	Accounts Payable	$100,000
Noncash Assets	300,000	Bill, Capital	25,000
		Page, Capital	110,000
		Larry, Capital	100,000
		Scott, Capital	65,000
	$400,000		$400,000

During the winding up of the partnership, the other assets are sold for $150,000 and the accounts payable are paid. Page and Larry are personally solvent, but Bill and Scott are personally insolvent. The partners share profits and losses in the ratio of 4:2:1:3.

7.

Required information

Based on the preceding information, what amount will be paid out to Bill upon liquidation of the partnership?

$11,667

$2,500

$0

$25,000

8.

Required information

Based on the preceding information, what amount will be paid out to Scott upon liquidation of the partnership?

$0

$2,500

$25,000

$65,000

9.

Required information

Based on the preceding information, what amount will be distributed to Page and Larry upon liquidation of the partnership?

	Page	Larry
A)	$80,000	$85,000
B)	$110,000	$100,000
C)	$68,333	$79,167
D)	$11,667	$5,833

Option C

Option D

Option A

Option B