A Local Partnership Was Considering the Possibility of Liquidation Since

question 52

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 Ding's creditors would have received?

• A) $36,000.
• B) $0.
• C) $2,500.
• D) $38,720.
• E) $67,250.

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Definitions:

Racialization Process

Describes the socio-political and economic processes by which racial categories are created, inhabited, transformed, and destroyed.

Indians

People originating from or associated with India; may also refer to individuals from indigenous communities in the Americas, though "Native Americans" is more accurate for the latter.

South Asians

People originating from the southern region of the Asian continent, primarily from countries like India, Pakistan, Bangladesh, Sri Lanka, and Nepal.

Symbolic Ethnicity

A form of ethnicity that is individualistic in nature and without real social cost for the individual, often expressed through nostalgic activities or the display of cultural symbols.