The Following Account Balances Were Available for the Perry, Quincy

question 15

Multiple Choice

The following account balances were available for the Perry, Quincy, and Renquist partnership just before it entered liquidation: Included in Perry's Capital account balance is a $20,000 partnership loan owed to Perry. Perry, Quincy, and Renquist shared profits and losses in a ratio of 2:4:4. Liquidation expenses were expected to be $15,000. All partners were insolvent.For what amount would the noncash assets need to be sold in order for Quincy to receive some cash from the liquidation?

• A) Any amount in excess of $170,000.
• B) Any amount in excess of $190,000.
• C) Any amount in excess of $260,000.
• D) Any amount in excess of $280,000.
• E) Any amount in excess of $300,000.

---

Definitions:

Predetermined Overhead Rate

The predetermined overhead rate is a calculated rate used to allocate manufacturing overhead to individual units of production. It is based on estimated costs and expected activity levels.

Fixed Manufacturing Overhead

The portion of the total manufacturing overhead costs that does not vary with the level of production, including costs such as rent, property taxes, and salaries of permanent staff.

Work in Process

Partially completed goods that are still in the production process at the end of an accounting period.

Standard Cost System

An accounting system that uses standard costs for product costing, based on expected costs.