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

question 43

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 available for safe payments. How should the amount of safe cash payments be distributed?

• A) in a ratio of 2:4:4 among all the partners.
• B) $18,333 to Henry and $16,667 to Jacobs.
• C) in a ratio of 1:2 between Henry and Jacobs.
• D) $15,000 to Henry and $10,000 to Jacobs.
• E) $21,667 to Henry and $3,333 to Jacobs.

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Definitions:

Promotes

Supports or actively encourages a cause, idea, or development.

Maternal Grandmother

The mother of a person's mother, often playing a unique role in the family dynamics and heritage.

Extended Family

A family of relatives in addition to the parents, usually three or more generations living in one household.

Structure

The arrangement or organization of components that together form an entity, system, or composition.