A Local Partnership Was Considering the Possibility of Liquidation Since

question 47

Multiple Choice

A local partnership was considering the possibility of liquidation since one of the partners (Ding) was personally insolvent. Capital balances at that time were as follows. Profits and losses were divided on a 4:2:2:2 basis, respectively. $$\begin{array} { l r } \text { Ding, capital } & \$ 60,000 \\\text { Laurel, capital } & 67,000 \\\text { Ezzard, capital } & 17,000 \\\text { Tillman, capital } & 96,000\end{array}$$ Creditors of partner Ding filed a $25,000 claim against the partnership's assets. 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, what is the minimum amount that Ding's creditors would have received?

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

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The highest possible gain or advantage that can be achieved from a particular action or situation.

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Negotiation Session

A designated period during which parties come together to discuss and reach agreements on specific matters.

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A feeling of doubt or skepticism towards someone or something's reliability or trustworthiness.