REFERENCE: 10-08
White,Sands,and Luke Has the Following Capital Account Balances $\begin{array} {ccc} && \text { White } & \text { Sands } & \text { Luke } \\\end{array}$

question 17

Short Answer

REFERENCE: 10-08
White,Sands,and Luke has the following capital account balances and profit and loss ratios:
$60,000 (30%);$100,000 (20%);and $200,000 (50%).
The partnership has received a predistribution plan.
-How would $200,000 be distributed?
$\begin{array} {ccc} && \text { White } & \text { Sands } & \text { Luke } \\\end{array}$
A) $\begin{array} {ccc} & \$ 60,000 & \$ 40,000 & \$ 100,000 \\\end{array}$
B) $\begin{array} {ccc} & \$ 6,000 & \$ 44,000 & \$ 150,000 \\\end{array}$
C) $\begin{array} {ccc} & \$ 48,148 & \$ 65,432 & \$ 86,420 \\\end{array}$
D) $\begin{array} {ccc} & \$ 12,000 & \$ 68,000 & \$ 120,000 \\\end{array}$
E) $\begin{array} {ccc} & \$ 60,000 & \$ 100,000 & \$ 40,000 \\\end{array}$

• A)\(\begin{array} {ccc} & \$ 60,000 & \$ 40,000 & \$ 100,000 \\\end{array}\)
• B) \(\begin{array} {ccc} & \$ 6,000 & \$ 44,000 & \$ 150,000 \\\end{array}\)
• C) \(\begin{array} {ccc} & \$ 48,148 & \$ 65,432 & \$ 86,420 \\\end{array}\)
• D) \(\begin{array} {ccc} & \$ 12,000 & \$ 68,000 & \$ 120,000 \\\end{array}\)
• E) \(\begin{array} {ccc} & \$ 60,000 & \$ 100,000 & \$ 40,000 \\
• \end{array}\)

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Definitions:

Artisans Liens

Legal claims granted to artisans or mechanics who have rendered services or provided materials, securing their right to payment.

Statute

A written law passed by a legislative body at the national or local level.

Security Interest

A legal claim or lien on collateral that secures the performance of an obligation, giving the holder a right to the property if the obligation is not met.

Real Property

Land and anything permanently attached to it, such as buildings or trees.