The Abrams, Bartle, and Creighton Partnership Began the Process of Liquidation

question 53

Multiple Choice

The Abrams, Bartle, and Creighton partnership began the process of liquidation with the following balance sheet:

Abrams, Bartle, and Creighton share profits and losses in a ratio of 3:2:5. Liquidation expenses are expected to be $12,000.
If the noncash assets were sold for $234,000, what amount of the loss would have been allocated to Bartle?

• A) $43,200.
• B) $46,800.
• C) $40,000.
• D) $42,400.
• E) $43,100.

---

Definitions:

Objective Test

A standard or criteria based on factual measures, independent of personal feelings or opinions, used to assess a person's situation or actions.

Duress

A situation where a person performs an act as a result of violence, threat, or other pressures against them, questioning the voluntariness of their decision.

Tort

A civil wrong that causes someone else to suffer loss or harm resulting in legal liability for the person who commits the tortious act.

Material Misrepresentation

False statements or omissions of fact that are so significant they affect a party's decision to enter into a contract.