Bill,Page,Larry,and Scott Have Decided to Terminate Their Partnership

question 23

Multiple Choice

Bill,Page,Larry,and Scott have decided to terminate their partnership.The partnership's balance sheet at the time they decide to wind up is as follows:
During the winding up of the partnership,the other assets are sold for $150,000 and the accounts payable are paid.Page and Larry are personally solvent,but Bill and Scott are personally insolvent.The partners share profits and losses in the ratio of 3:2:1:4.
-Based on the preceding information,what amount will be paid out to Bill upon liquidation of the partnership?

• A)$0
• B)$5,000
• C)$25,000
• D)$2,500

---

Definitions:

Willfully Violates

Intentionally breaching or failing to comply with a legal obligation, rule, or law.

Securities Act of 1933

A U.S. federal law that governs the sale of securities, requiring them to be registered and to disclose relevant financial information to protect investors.

Civil Liability

The responsibility to compensate for wrongs or damages caused by one’s actions or negligence to another party, as governed by civil law.

Implied Agreement

An unwritten contract that is assumed to exist based on the actions and circumstances of the parties involved.