Table 12-11
Doug, Davis, and Dwight Are in the Process

question 65

Multiple Choice

Table 12-11
Doug, Davis, and Dwight are in the process of liquidating their partnership. They share profits and losses in a 5:3:2 ratio. Following is the current balance sheet for the partnership:
$\begin{array}{lcll}\text { Cash } & \$ 100,000 & \text { Liabilities } & \$ 55,000 \\\text { Other assets } & 225,000 & \text { Doug, canital } & 145,000\\&&\text { Davis, capital } & 50,000 \\&&\text { Dwight, capital } & 75,000\end{array}$ $\text { Total assets }\quad\$325,000\quad\quad\quad \text { Total liabilities and capital }\quad\$325,000$
-Refer to Table 12-11.If the other assets are sold for $250,000,the total amount of cash to be distributed to the partners is:

• A) $295,000
• B) $250,000
• C) $350,000
• D) $195,000

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Definitions:

Central Direction

The control of economic or organizational activity by a central authority or government.

Past Income

The amount of money earned in preceding periods, often used to assess financial stability or creditworthiness.

Inheritance

Assets received from someone who has died, transferring wealth or obligations from the deceased to their legal heirs or beneficiaries.

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A system of government where power is divided between a national (federal) government and various regional governments.