Table 12-10 M, N, and O Are Partners in the Drain Company

question 172

Multiple Choice

Table 12-10
M, N, and O are partners in the Drain Company and share profits in a 3:3:2 ratio, respectively. They have decided to liquidate their business. At the start of the liquidation, their capital account balances were $50,000, $25,000, and $25,000, respectively. After the disposal of all noncash assets and the payment of all debts, cash of $90,000 remains to be distributed to the partners.
-Refer to Table 12-10.The amount of cash O should receive in the liquidation of the Drain Company is:

• A) $21,250
• B) $46,250
• C) $22,500
• D) $21,250 to each and remainder split evenly

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Definitions:

Anscombe

G.E.M. Anscombe was a 20th-century philosopher known for her work in philosophy of mind, moral philosophy, and the philosophy of action.

Ethical Life

Living in a manner that is consistent with one’s own moral principles and values, often involving considerations of fairness, integrity, and respect for others.

Aristotle

An ancient Greek philosopher and polymath, whose work spans various fields of philosophy and science, and is considered one of the greatest philosophers in history.

Virtue Ethics

An approach to ethics that emphasizes the character of the moral agent, rather than rules or consequences, as the key element of ethical thinking.