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

question 170

Multiple Choice

In liquidation, balances prior to the distribution of cash to the partners are: Cash $300,000; Presley, Capital $140,000; Laswell, Capital $130,000, and Hunter, Capital $30,000. The income ratio is 6:2:2, respectively. How much cash should be distributed to Presley?

• A) $125,000
• B) $136,250
• C) $140,000
• D) $150,000

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Definitions:

Self-serving Bias

The common tendency to credit ourselves for our successes (attributing them to internal factors) while attributing our failures to external factors.

Stereotyping Bias

The preconceived and oversimplified beliefs or ideas about particular groups of people, which can influence judgments and decisions unconsciously.

Self-concept

An individual's perception of themselves, shaped by their experiences, beliefs, and attributes.

Self-deception

The act of lying to oneself or convincing oneself of a truth that is actually false.