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

---

Definitions:

Gonadal Dysgenesis

A developmental disorder characterized by the incomplete development of the gonads, which can lead to a variety of reproductive and hormonal deficiencies.

Androgen Insensitivity Syndrome

A genetic condition where a person who is genetically male is resistant to male hormones (androgens) and thus has some or all of the physical traits of a woman, but the genetic makeup of a man.

Klinefelter Syndrome

A genetic condition affecting males, characterized by an extra X chromosome, which can lead to symptoms such as reduced testosterone levels and fertility issues.

Gonadal Dysgenesis

A condition of underdeveloped or malformed gonads resulting in a wide range of disorders related to sexual development.