Gonda, Herron, and Morse Is Considering Possible Liquidation Because Partner

question 1

Multiple Choice

Gonda, Herron, and Morse is considering possible liquidation because partner Morse is personally insolvent. The partners have the following capital balances: $60,000, $70,000, and $40,000, respectively, and share profits and losses 30%, 45%, and 25%, respectively. The partnership has $200,000 in noncash assets that can be sold for $150,000. The partnership has $10,000 cash on hand, and $40,000 in liabilities. What is the minimum that partner Morse's creditors would receive if they have filed a claim for $50,000?

• A) $0.
• B) $27,500.
• C) $45,000.
• D) $47,500.
• E) $50,000.

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Definitions:

Gender-specific Toys

Toys that are marketed or designed specifically for children of a particular gender, reinforcing traditional gender roles.

Socialization

The process by which individuals internalize the values, beliefs, and norms of a society and learn to function as members of that society.

Traditional Gender Roles

Socially and culturally defined prescriptions and beliefs about the behavior and responsibilities of men and women, often based on normative concepts of masculinity and femininity.

Feral Children

Children who have lived isolated from human contact from a very young age, and have little or no experience of human care, behavior, or language.