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

question 47

Multiple Choice

In liquidation, balances prior to the distribution of cash to the partners are: Cash $360,000; Peterson, Capital $168,000; Staley, Capital $156,000, and Klugman, Capital $36,000. The income ratio is 6:2:2, respectively. How much cash should be distributed to Peterson?

• A) $150,000.
• B) $163,500.
• C) $168,000.
• D) $180,000.

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