Question
The following condensed balance sheet is presented for the Surfs Up Partnership of Bethany, Alana, and Coco who share profits and losses in the ratio
The following condensed balance sheet is presented for the Surfs Up Partnership of Bethany, Alana, and Coco who share profits and losses in the ratio of 6:2:2, respectively:
Cash | $ 40,000 |
Other assets | 140,000 |
| $ 180,000 |
|
|
Liabilities | $ 70,000 |
Bethany, Capital (60%) | 50,000 |
Alana, Capital (20%) | 50,000 |
Coco, Capital (20%) | 10,000 |
| $ 180,000 |
It was agreed to by all the partners that the partnership would be liquidated after selling the other assets. All partners are personally insolvent. The other assets are sold for $80,000 and the liabilities are paid off. What amount of cash will Bethany, Alana, and Coco receive respectively upon liquidation?
A. | $12,500, $37,500, $0 | |
B. | $50,000, $50,000, $10,000 | |
C. | $13,000, $37,500, $0 | |
D. | $14,000, $38,000, $2,000 |
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