In Liquidation Balances Prior to the Distribution of Cash to the Partners

question 141

Multiple Choice

In liquidation balances prior to the distribution of cash to the partners are: Cash $765000; Peterson Capital $420000; Laney Capital $390000 and Howell Capital $45000 deficiency. The income ratio is 6:2:2 respectively. How much cash should be distributed to Laney if Howell does not pay his deficiency?

• A) $367000
• B) $378750
• C) $356250
• D) $390000

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Definitions:

Freudian Theory

A set of psychoanalytic theories developed by Sigmund Freud that emphasize unconscious processes and childhood experiences in shaping personality and behavior.

Reinforcement

In the context of behavioral psychology, reinforcement involves any stimulus which strengthens or increases the probability of a specific response.

Frustration Aggression Hypothesis

A psychological theory suggesting that frustration, or the blockage of achieving an expected goal, leads to aggressive behavior.

Act Aggressively

Exhibiting behavior that intends to harm or show dominance over others, either physically or verbally.