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

question 8

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. After the assets were sold, what was Balzac's capital balance?

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

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Definitions:

Approximately

An adverb describing an estimate or a value that is close to but not exactly the specified amount.

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Canada's Divorce Act

The legal legislation governing divorce in Canada, outlining the grounds and procedures for legally ending a marriage.

Physical Cruelty

Actions that cause physical harm or suffering to others, including animals, often indicative of abuse or violence.