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.