Partners Able, Baker, and Chapman Have the Following Personal Assets

question 33

Multiple Choice

Partners Able, Baker, and Chapman have the following personal assets, personal liabilities, and partnership capital balances: Assume profits and losses are allocated equally.
After applying the doctrine of marshaling of assets, the capital balances for Able, Baker, and Chapman, respectively, would be

• A) $50,000, $(2,000), and $58,000.
• B) $48,000, 0, and $58,000.
• C) $49,000, 0, and $57,000.
• D) $34,000, 0, and $54,000.

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Definitions:

Clicks-and-mortar

A business model that combines both online (clicks) and offline (mortar) presences for improved customer experience.

Brick-and-mortar

Refers to businesses that have physical stores as opposed to or in addition to an online presence.

Brick-and-mortar

Refers to physical stores or businesses that have a tangible presence in the form of a building where customers can visit.

Restaurant

A business establishment where meals or refreshments can be purchased and consumed by the public.