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

question 52

Multiple Choice

In liquidation, balances prior to the distribution of cash to the partners are: Cash $306,000; Peterson, Capital $168,000; Staley, Capital $156,000, and Klugman, Capital $18,000 deficiency. The income ratio is 6:2:2, respectively. How much cash should be distributed to Staley if Klugman does not pay his deficiency?

• A) $147,000.
• B) $151,500.
• C) $142,500.
• D) $156,000.

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Definitions:

Social Bonding

The process of developing attachments and connections with others, which is fundamental to human social and emotional development.

Formal Religion

Organized religious practices and institutions that have structured doctrines, rituals, and clergy, as opposed to more personal or informal spiritual beliefs.

Agnostics Or Atheists

Individuals who either doubt the existence of God or gods (agnostics) or deny the existence of any deities (atheists).

Secularization

The process by which developed societies move away from explanations based on religion to ones based on science, rationality, and logic.