The Partnership of Larry, Moe, and Curly Shares Profits and Losses

question 19

Multiple Choice

The partnership of Larry, Moe, and Curly shares profits and losses 60%, 30%, and 10%, respectively. On January 1, 2017, the partners voted to dissolve the partnership, at which time the assets, liabilities, and capital balances were as follows: All of the partners are personally insolvent. Assume that all noncash assets are sold for $840,000 and all available cash is distributed in final liquidation of the partnership. Cash should be distributed to the partners as follows:

• A) Larry, $744,000; Moe, $372,000; Curly, $124,000.
• B) Larry, $440,000; Moe, $380,000; Curly, $200,000.
• C) Larry, $224,000; Moe, $272,000; Curly, $164,000.
• D) Larry, $396,000; Moe, $198,000; Curly, $66,000.

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Definitions:

Pizzas

A popular dish of Italian origin consisting of a usually round, flat base of leavened wheat-based dough topped with tomatoes, cheese, and often various other ingredients, baked at a high temperature.

Production

The procedure of integrating assorted material and immaterial elements (such as schemes and knowledge) to manufacture items for consumer use.

Specialization And Trade

In economics, specialization refers to the practice of focusing production on a limited scope of products or services to gain efficiency, while trade involves the exchange of these goods or services between individuals or entities, often leading to increased overall economic welfare.

Pizzas

A popular dish of Italian origin consisting of a usually round, flat base of leavened wheat-based dough topped with tomatoes, cheese, and often various other ingredients baked at a high temperature.