The Henry, Isaac, and Jacobs Partnership Was About to Enter

question 22

Multiple Choice

The Henry, Isaac, and Jacobs partnership was about to enter liquidation with the following account balances:

Estimated expenses of liquidation were $5,000. Henry, Isaac, and Jacobs shared profits and losses in a ratio of 2:4:4.
Before liquidating any assets, the partners determined the amount of cash for safe payments and distributed it. The noncash assets were then sold for $120,000. The liquidation expenses of $5,000 were paid. How much of the $120,000 would be distributed to the partners? (Hint: Either a predistribution plan or a schedule of safe payments would be appropriate for solving this item.)

• A) Option A
• B) Option B
• C) Option C
• D) Option D
• E) Option E

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Definitions:

Duodenal Mucosa

The lining of the duodenum, which contains cells responsible for the secretion of enzymes necessary for digestion.

Acidic Chyme

The partially digested, acidic food that passes from the stomach to the small intestine.

Parietal Cells

Cells in the stomach lining that secrete hydrochloric acid and intrinsic factor, essential for digestion and B12 absorption respectively.

Active Transport

The movement of molecules across a cell membrane requiring energy input, typically against their concentration gradient.