The Following Balance Sheet Is for the Partnership of Able,Bayer,and

question 19

Multiple Choice

The following balance sheet is for the partnership of Able,Bayer,and Cain which shares profits and losses in the ratio of 4:4:2,respectively.

The original partnership was dissolved when its assets,liabilities,and capital were as shown on the above balance sheet and liquidated by selling assets in installments.The first sale of noncash assets having a book value of $90,000 realized $50,000,and all cash available after settlement with creditors was distributed.How much cash should the respective partners receive (to the nearest dollar) ?

• A)Able $0; Bayer $3,000; Cain $17,000.
• B)Able $8,000; Bayer $8,000; Cain $4,000.
• C)Able $6,667; Bayer $6,667; Cain $6,666.
• D)Able $0; Bayer $13,333; Cain $6,667.

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Definitions:

Teres Minor

A small muscle of the rotator cuff that assists in the rotation and stabilization of the shoulder joint.

Tensor Fascia Lata

A muscle of the thigh that helps in stabilizing and moving the hip and knee, encased in the fascia lata tissue.

Iliopsoas

A major hip flexor muscle group, consisting of the iliacus and psoas major muscles, important for lifting the thigh and trunk stability.

Rotator Cuff

A group of muscles and tendons that surround the shoulder joint, maintaining stability and allowing rotational movement.