A Local Partnership Was Considering the Possibility of Liquidation Since

question 71

Multiple Choice

A local partnership was considering the possibility of liquidation since one of the partners (Ding) was insolvent.Capital balances at that time were as follows.Profits and losses were divided on a 4:2:2:2 basis,respectively.
Ding's creditors filed a $25,000 claim against the partnership's assets.At that time,the partnership held assets reported at $360,000 and liabilities of $120,000.
If the assets could be sold,for $228,000 what is the minimum amount that Tillman's creditors would have received?

• A)$36,000.
• B)$0.
• C)$2,500.
• D)$38,250.
• E)$67,250.

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Definitions:

Caregiver

A person who looks after the needs of someone who is unable to care for themselves, often due to factors like age, illness, or disability.

Secure Attachment

A deep and enduring emotional bond that connects one person to another across time and space, typically seen in child-caregiver relationships.

Characteristics

Distinctive traits, qualities, or properties that identify and distinguish individuals, groups, or things.

Caregiver

An individual who provides care and support to someone who is aged, disabled, or suffering from chronic illness, often a family member or professional aide.