Scenario 14-2 Assume That a Partnership Had Assets with a Book Value

question 27

Multiple Choice

Scenario 14-2
Assume that a partnership had assets with a book value of $240,000 and a market value of $195,000, outside liabilities of $70,000, loans payable to partner Able of $20,000, and capital balances for partners Able, Baker, and Chapman of $70,000, $30,000, and $50,000.
-Refer to Scenario 14-2. How much would Able receive upon liquidation of the partnership assuming profits and losses are allocated equally?

• A) $70,000
• B) $90,000
• C) $75,000
• D) $55,000

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