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

question 41

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.

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Definitions:

Elicits

To draw out or bring forth a response or reaction from someone or something.

Conditioning

A learning process that involves developing a new response to a stimulus by associating it with another stimulus or event, foundational in behavioral psychology.

Spontaneous Recovery

A phenomenon in learning where conditioned responses reappear after a delay or period of extinction, without further conditioning.

Discrimination

Unfair treatment of individuals based on their membership in a particular group, such as race, gender, or sexual orientation.