Partners Eric and Jeremy Each Have $3,000 Capital Balances and Share

question 74

Multiple Choice

Partners Eric and Jeremy each have $3,000 capital balances and share income and losses in a 2:1 ratio for Eric and Jeremy,respectively.Cash equals $1,000,noncash assets are $10,000,and liabilities are $5,000.If all the noncash assets are sold for $4,000,and each partner is personally insolvent,Jeremy eventually will receive cash of:

• A)$0.
• B)$1,000.
• C)$1,500.
• D)$2,000.

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Definitions:

Cavity

In manufacturing, it refers to the hollow or recessed part of a mold into which material is injected or poured to form a particular shape.

White Iron

A hard, brittle form of cast iron, made by cooling the casting quickly, with a microstructure of cementite and pearlite.

Cold Shorting

A material property where a metal becomes brittle at low temperatures, making it prone to cracking when subjected to stress.

Machining Lugs

Protrusions on a part designed to provide additional material for clamping or holding during machining processes.