Dancey, Reese, Newman, and Jahn Were Partners Who Shared Profits

question 67

Multiple Choice

Dancey, Reese, Newman, and Jahn were partners who shared profits and losses on a 4:2:2:2 basis, respectively. They were beginning to liquidate their business. At the start of the process, Capital account balances were as follows: Which one of the following statements is true for a predistribution plan?

• A) The first available $16,000 would go to Newman.
• B) The first available $20,000 would go to Dancey.
• C) The first available $8,000 would go to Jahn.
• D) The first available $8,000 would go to Newman.
• E) The first available $4,000 would go to Jahn.