A Local Partnership Was Considering the Possibility of Liquidation Since

question 44

Multiple Choice

A local partnership was considering the possibility of liquidation since one of the partners (Ding) was personally insolvent. Capital balances at that time were as follows. Profits and losses were divided on a 4:2:2:2 basis, respectively.

Creditors of partner Ding filed a $25,000 claim against the partnership's assets. At that time, the partnership held noncash assets reported at $360,000 and liabilities of $120,000. There was no cash on hand at the time.
If the assets could be sold for $228,000, what is the minimum amount that Ezzard's creditors would have received?

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

Analyze the impact of learning curves on production efficiency and time management.

Understand the basic properties and theories of light and color vision, including trichromatic and opponent-process theories.

Explain the processes of audition, including how sound waves are characterized, how humans localize sound, and the theories of pitch perception.

Describe the sensory processes involved in taste, smell, and the concept of a common chemical sense.

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Definitions:

Cash Dividends

The issuing of cash dividends from earnings to shareholders by a corporation.

Income Statement

A financial statement that shows a company’s revenue, expenses, and profit over a specific period.

Statement Of Retained Earnings

A financial report detailing the variations in retained earnings over a certain timeframe.

Balance Sheet

A financial statement that shows a company’s assets, liabilities, and shareholders' equity at a specific point in time, providing a snapshot of its financial condition.