A Local Partnership Was Considering the Possibility of Liquidation

question 7

Multiple Choice

A local partnership was considering the possibility of liquidation. Capital account balances at that time were as follows. Profits and losses were divided on a 4:2:2:2 basis, respectively. At that time, the partnership held noncash assets reported at $360,000 and liabilities of $120,000. There was no cash on hand at the time.If the assets could be sold for $228,000 and there are no liquidation expenses, what is the amount that Ding would receive from the liquidation?

• A)$36,000.
• B)$0.
• C)$2,500.
• D)$38,720.
• E)$67,250.

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Definitions:

Behavioral Problems

Actions or patterns of behavior that are considered inappropriate, disruptive, or harmful, often discussed in the context of children or adolescents.

Low Self-Control

A personal characteristic involving a lack of restraint and impulsivity, affecting decision-making and behavior.

Impulsivity

A propensity for spontaneous action, showing a pattern of conduct with minimal to no planning, contemplation, or regard for potential outcomes.

Schizophrenia

A chronic and severe mental disorder that affects how a person thinks, feels, and behaves, characterized by episodes of psychosis including delusions, hallucinations, and disorganized thinking.