The Partnership of Mick, Keith, and Charlie Has Been Dissolved

question 32

Multiple Choice

The partnership of Mick, Keith, and Charlie has been dissolved and is in the process of liquidation. On July 1, 2017, just before the second cash distribution, the assets and equities of the partnership along with residual profit sharing ratios were as follows: Assume that Mick takes equipment with a fair value of $40,000 and a book value of $50,000 in partial satisfaction of his equity in the partnership. If all the $200,000 cash is then distributed, the partners should receive:

• A) Mick, $100,000; Keith, $60,000; Charlie, $40,000
• B) Mick, 25,000; Keith, 15,000; Charlie, 10,000
• C) Mick, - 0; Keith, 45,000; Charlie, 5,000
• D) - 0; Keith, 50,000; Charlie, - 0

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Definitions:

Transmission Channels

The means or pathways through which information, signals, or data are disseminated from one point to another.

Encodes

Refers to the process of converting information into a particular form, especially to hide or secure its content.

Transmitted

The act of sending or conveying something from one person, place, or thing to another.

Decodes

The process of interpreting or making sense of coded messages, symbols, or data.