Question
Required information SB Bill, Page, Larry, and Scott have decided... Bill, Page, Larry, and Scott have decided to terminate their partnership. The partnership's balance sheet
Required information
SB Bill, Page, Larry, and Scott have decided...
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.
TB MC Qu. 16-08 Based on the preceding information, what...
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 | ||||
Multiple Choice
Option A
Option C
Correct
Option D
Option B
Please explain using math steps how to get option C
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