Ivey and Balzac Had a Partnership That Distributed Profits in a Ratio

question 14

Multiple Choice

Ivey and Balzac had a partnership that distributed profits in a ratio of 1:3 respectively. At the end of 2013, they agreed to liquidate the partnership. Prior to liquidation, the partnership had Cash of $50 000, Inventory of $75 000, Equipment (net) of $235 000, and no payables. Partner capital balances were: Ivey: $100 000 Balzac: $260 000
The inventory was sold for $59 000 and the equipment was sold for $243 000. How much cash was paid to Balzac in the final settlement?

• A)$106 000
• B)$98 000
• C)$254 000
• D)$176 000

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Definitions:

Symmetrical Bell-Shaped Curve

A graphical representation of a normal distribution, indicating that most occurrences take place around the mean and fewer occur as one moves away from the mean.

Normal Distribution

A bell-shaped curve that represents the distribution of many types of data where most values cluster around the mean or average, showing that data near the mean are more frequent in occurrence.

High Average

A term typically used to describe scores or performance that are above the median but not exceedingly high, often used in statistical and educational assessments.

Mental Age

A measure of an individual's cognitive ability compared to the average cognitive ability of an age group.