A Local Partnership Has Assets of Cash of $5,000 and a Building

question 1

Multiple Choice

A local partnership has assets of cash of $5,000 and a building recorded at $80,000. All liabilities have been paid. The partners' capital accounts are as follows: Harry $40,000, Landers $30,000 and Waters $15,000. The partners share profits and losses 4:4:2.If the building is sold for $50,000, what amount should Waters receive in the final settlement?

• A) $5,000.
• B) $9,000.
• C) $18,000.
• D) $28,000.
• E) $55,000.

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Definitions:

Opposites

Elements or ideas that are diametrically different from each other, often used to highlight contrast or balance.

Equivalence

The condition of being equal in value, function, meaning, or status.

Entropy

In thermodynamics, a measure of the disorder or randomness in a system, often metaphorically applied to describe chaos in various contexts.

Collective Unconscious

A concept in Carl Jung's theory of analytical psychology that refers to the part of the unconscious mind which is shared among beings of the same species and contains archetypes.