Hanson, James, and Smith, a Partnership, Is in the Process

question 33

Multiple Choice

Hanson, James, and Smith, a partnership, is in the process of liquidating. The partners have the following capital account balances; $48,000, $48,000, and ($18,000) respectively. The partners share all profits and losses 16%, 48%, and 36%, respectively. Smith has indicated that the ($18,000) deficit will be covered with a forthcoming contribution. The remaining partners have requested an immediate distribution of $40,000 in cash that is available. How should this cash be distributed?

• A) Hanson $10,000; James $30,000.
• B) Hanson $34,000; James $6,000.
• C) Hanson $22,308; James $17,692.
• D) Hanson $28,594; James $11,406.
• E) Hanson $25,000; James $15,000.

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Definitions:

Retinal Disparity

The difference in visual images that each eye perceives because of the eyes' different positions, a cue used for depth perception in binocular vision.

Optical Illusions

Visual tricks that deceive the eye, making the viewer perceive something differently from its actual reality.

Eye Muscles

The group of muscles surrounding the eye that allow for its movement and the ability to focus on different objects.

Light Rays

Streams of photons traveling in a straight line, visible as light to the human eye.