The Abrams, Bartle, and Creighton Partnership Began the Process of Liquidation

question 9

Multiple Choice

The Abrams, Bartle, and Creighton partnership began the process of liquidation with the following balance sheet: Abrams, Bartle, and Creighton share profits and losses in a ratio of 3:2:5. Liquidation expenses are expected to be $12,000. After the liquidation expenses of $12,000 were paid and the noncash assets sold, Creighton had a deficit of $8,000. For what amount were the noncash assets sold?

• A)$170,000.
• B)$264,000.
• C)$158,000.
• D)$146,000.
• E)$185,000.

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Definitions:

Draft

A draft is a preliminary version of a document, plan, or design that is subject to revisions and improvements.

Buyer's Bank

The financial institution that represents a buyer in transactions, ensuring payment to the seller under agreed conditions.

Cashier's Check

A check issued by a bank and drawn from its own funds rather than those of a personal account, typically used for significant transactions where guaranteed funds are required.

Trade Acceptance

A draft that is drawn by a seller of goods ordering the buyer to pay a specified sum of money to the seller, usually at a stated time in the future. The buyer accepts the draft by signing the face of the draft, thus creating an enforceable obligation to pay the draft when it comes due. On a trade acceptance, the seller is both the drawer and the payee.