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:

Proposition

An offered or suggested plan or idea for consideration or action.

Hypothetical Proposition

A statement or proposition that is based on hypothesis rather than fact, typically used to explore potential outcomes.

Consequent

The outcome or result following a condition in a conditional statement in logic.

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