Question
Partnership of Karen, Kathy, and Ashley's balance sheet is as follows: Cash $ 30,000 Other assets 150,000 $ 180,000 Liabilities $ 60,000 Dunn, Capital 50,000
Partnership of Karen, Kathy, and Ashley's balance sheet is as follows:
| Cash | $ | 30,000 | |
| Other assets | 150,000 | ||
| $ | 180,000 | ||
| Liabilities | $ | 60,000 | |
| Dunn, Capital | 50,000 | ||
| Lott, Capital | 40,000 | ||
| Tyler, Capital | 30,000 | ||
| $ | 180,000 | ||
The partners share profits and losses in a ratio of 7:2:1, respectively.
The partners agreed that the partnership would be liquidated after selling the other assets. All partners are personally insolvent. What would each of the partners receive if the other assets are sold for $70,000?
| Dunn | Lott | Tyler | |||||||||
| A | $ | 6,000 | $ | 24,000 | $ | 22,000 | |||||
| B | $ | 0 | $ | 21,000 | $ | 19,000 | |||||
| C | $ | 50,000 | $ | 40,000 | $ | 30,000 | |||||
| D | $ | 0 | $ | 20,000 | $ | 20,000 | |||||
Multiple Choice
-
Option A
-
Option D
-
Option B
- Option C
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Using Accounting & Financial InformationAnalyzing, Forecasting, And Decision Making
Authors: Mark S. Bettner
2nd Edition
1947098683, 9781947098688
