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:

Reaction Time

The duration it takes for an individual to respond to a stimulus.

Central Nervous System

The complex of nerve tissues that controls the activities of the body, comprising the brain and spinal cord.

Spinal Cord

A long, thin bundle of nervous tissue that extends from the brain down the vertebral column, transmitting nerve impulses to and from the brain.

Schwann Cells

Glial cells of the peripheral nervous system that wrap around axons, providing electrical insulation (myelination) and support for nerve regeneration.