A Local Partnership Was Considering the Possibility of Liquidation Since

question 62

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 Ezzard's creditors would have received?

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

---

Definitions:

Surgical Site

An anatomical location on the body where surgery is performed.

Infection

A disease caused by the entrance of pathogens into the body, leading to a harmful biological response by the host.

Surgical Site Infection

An infection that occurs after surgery in the part of the body where the surgery took place, often causing complications.

Microorganism

A microscopic organism, such as a bacterium, virus, or fungus, that can be pathogenic or beneficial in nature.