Dancey, Reese, Newman, and Jahn Were Partners Who Shared Profits

question 73

Multiple Choice

Dancey, Reese, Newman, and Jahn were partners who shared profits and losses on a 4:2:2:2 basis, respectively. They were beginning to liquidate their business. At the start of the process, capital balances were as follows: $$\begin{array} { l r } \text { Dancey, capital } & \$ 72,000 \\\text { Reese, capital } & 32,000 \\\text { Newman, capital } & 52,000 \\\text { Jahn, capital } & 24,000\end{array}$$ Which one of the following statements is true for a predistribution plan?

• A)The first available $16,000 would go to Newman.
• B)The first available $20,000 would go to Dancey.
• C)The first available $8,000 would go to Jahn.
• D)The first available $8,000 would go to Newman.
• E)The first available $4,000 would go to Jahn.

---

Definitions:

Firmly Attached

Pertains to property or equipment that is fixed or securely fastened to a location or structure, often impacting legal status or taxation.

Joint Tenancy

A form of co-ownership where two or more persons hold equal shares of a property with rights of survivorship, meaning when one owner dies, their share automatically passes to the remaining owner(s).

Tenants

Individuals or entities that occupy property or land rented from a landlord and are subject to the terms of a lease.

Tenancy in Common

A form of joint ownership of property in which each owner holds an undivided interest without right of survivorship.