Allen, Branden & Caylin Are in the Process of Liquidating

question 5

Multiple Choice

Allen, Branden & Caylin are in the process of liquidating their partnership. They have the following capital balances and profit and loss percentages: $\begin{array}{lcc} & \text { Capital Balance } & \text { Profit } / \text { Loss } \% \\\text { Allen } & 5,000 \text { debit } & 20 \% \\\text { Branden } & 18,000 \text { credit } & 50 \% \\\text { Caylin } & 6,000 \text { credit } & 30 \%\end{array}$ The partnership balance sheet shows cash of $5,000, non-cash assets of $14,000, and no liabilities. Assuming no liquidation expenses, what safe payment could be made?

• A) $5,000 split between Branden & Caylin by a ratio of 5/8 and 3/8, respectively.
• B) $5,000 to Branden only
• C) $1,000 to Allen, $2,500 to Branden, and $1,500 to Caylin
• D) $18,000 to Branden only

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