The Balance Sheet of Morgan and Rockwell Was as Follows

question 144

Multiple Choice

The balance sheet of Morgan and Rockwell was as follows immediately prior to the partnership's being liquidated: cash, $20,000; other assets, $160,000; liabilities, $40,000; Morgan capital, $60,000; Rockwell capital, $80,000. The other assets were sold for $139,000. Morgan and Rockwell share profits and losses in a 2:1 ratio. As a final cash distribution from the liquidation, Morgan will receive cash totaling

• A) $46,000
• B) $51,000
• C) $60,000
• D) $49,500

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