A Local Partnership Was Considering the Possibility of Liquidation Since

question 32

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 Laurel's creditors would have received?

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

---

Definitions:

Risk Factors

Aspects or conditions associated with an increased likelihood of developing a disease or injury.

Dignity Therapy

A psychotherapeutic intervention designed to alleviate emotional suffering and enhance the quality of life among those nearing the end of their lives.

Cultural Differences

Cultural Differences are variations in the ways of life, beliefs, norms, and behaviors among different groups of people, often influencing perceptions, actions, and interactions.

Chronic Illness

A long-lasting health condition that can be controlled but not cured, often requiring ongoing management and care.