The Balance Sheet of Ryan and Peter's Partnership as of December

question 123

Multiple Choice

The balance sheet of Ryan and Peter's partnership as of December 31,2018,is given below. $\begin{array}{|l|c|l|c|}\hline \text { Assets } & & \underline{\text { Liabilities }} & \\\hline \text { Cash } & \$ 54,201 & \text { Accounts Payable } & \$ 12,000 \\\hline \text { Accounts Receivable } & 11,000 & \text { Other liabilities } & 69,201 \\\hline \text { Furniture } & 23,000 & \text { Partners' Equity } & \\\hline \text { Equipment } & 38,000 & \text { Ryan, Capital } & 27,000 \\\hline \text { Other assets } & 9000 & \text { Peter, Capital } & \underline{27,000} \\\hline \text { Total assets } & \$ 135,201 & \text { Total liabilities and partners' equity } & \$ 135,2 \\\hline\end{array}$ Ryan and Peter share profits in the ratio 3:2.They have decided to liquidate the partnership.The furniture
And the equipment were sold at a cumulative loss of $4000.The accounts receivable were collected in full and the other assets were written off as worthless.The accounts payable and other liabilities were paid off at book value.The firm's accountant distributed the remaining cash between Ryan and Peter equally.However,Peter initiated a lawsuit claiming that his share was greater than Ryan's.How much should Peter have received?

• A) $20,500
• B) $19,200
• C) $21,800
• D) $23,200

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Definitions:

Injustice

The lack of fairness or justice within society, where rights are not upheld or discrimination is prevalent.

Informal Deviance

Behaviors that violate informal social norms or expectations but are not codified into law.

Rudeness

Behavior or speech that is disrespectful or impolite, often violating societal norms for courtesy and conduct.

Crime

One form of deviance; specifically, behavior that violates criminal laws.