A Local Partnership Was Considering the Possibility of Liquidation Since

question 42

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 Tillman's creditors would have received?

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

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Definitions:

μs

Generally denotes a population mean in statistics, though the context may alter its specific interpretation.

Null Hypothesis

The presumption made in statistical analysis that there is no association or effect among variables being studied.

μs

The symbol for the population mean in statistics, representing the average value of a distribution.

Critical Value

A point on the scale of the test statistic beyond which we reject the null hypothesis, assuming the alternative hypothesis.