General Widget's Partnership Assets Amount to $34,000 After Liquidation

question 16

Multiple Choice

General Widget's partnership assets amount to $34,000 after liquidation. Frank, Gene, and Hank, equal partners, each contributed $3,000 into the capital pool at the inception of the business. Gene later loaned the business $5,000. The partnership owes $23,000 to creditors for inventory. Under the UPA, what will Gene get in distribution, assuming there is no agreement on the distribution of profits?

• A) $5,000.
• B) $7,000.
• C) $8,000.
• D) $11,000.