Bill, Page, Larry, and Scott Have Decided to Terminate Their

question 16

Multiple Choice

Bill, Page, Larry, and Scott have decided to terminate their partnership. The partnership's balance sheet at the time they decide to wind up is as follows: During the winding up of the partnership, the other assets are sold for $150,000 and the accounts payable are paid. Page and Larry are personally solvent, but Bill and Scott are personally insolvent. The partners share profits and losses in the ratio of 3:2:1:4.
Based on the preceding information, what amount will be paid out to Bill upon liquidation of the partnership?

• A) $0
• B) $5,000
• C) $25,000
• D) $2,500

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Definitions:

Formulate Plan

The act of creating a detailed proposal for achieving specific objectives or solving particular problems.

Closing Section

The final part of a document, presentation, or communication, summarizing key points and often providing recommendations or calls to action.

Thank-You Note

A written expression of gratitude, often sent after receiving a gift or favor.

Abbreviations

Shortened forms of words or phrases, used to save space or time, such as "ASAP" for "as soon as possible."