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

question 71

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.
The noncash assets were sold for $134,000. Which partner(s) would have had to contribute assets to the partnership to cover a deficit in his or her capital account?

• A) Abrams.
• B) Bartle.
• C) Creighton.
• D) Abrams and Creighton.
• E) Abrams and Bartle.

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Definitions:

Legally Sufficient

This refers to a condition or document meeting all legal requirements and standards to be considered valid or enforceable.

Consideration

Consideration in contract law refers to something of value promised to another when making a contract, which can be a service, money, or an object.

Bilateral Contract

A type of contract involving two parties where each party makes a promise or set of promises to the other.

Consideration

Something of value exchanged between parties in a contract, making the agreement legally binding.