The Balance Sheet of Ryan and Peter Firm as on December

question 53

Multiple Choice

The balance sheet of Ryan and Peter firm as on December 31,2017,is given below.

Ryan and Peter share profits in the ratio 3:2.They have decided to liquidate the partnership with immediate effect.The furniture and the equipment were sold at a cumulative loss of $4,000.The accounts receivable were received in cash 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:

Necessary

An essential requirement or condition that must be met or possessed for a particular purpose or outcome.

Enumerated Powers

Specific powers granted to an entity, often a governmental body, explicitly listed in a constitution or similar governing document.

Proper Clause

Likely a mistake for "Necessary and Proper Clause," which grants Congress the power to pass all laws necessary and proper for executing its enumerated powers.

Federal Reserve System

The central banking system of the United States, responsible for the nation's monetary policy and regulation of the banking industry.