A Local Partnership Was Considering the Possibility of Liquidation Since

question 45

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 Ezzard's creditors would have received?

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

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Definitions:

Normal Distribution

A bell-shaped probability distribution that is symmetric about the mean, showing that data near the mean are more frequent in occurrence than data far from the mean.

Standard Deviation

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Fast Food

A type of food service that emphasizes minimal preparation time and quick service, often associated with preheated or precooked ingredients served in a packaged form for take-away.

Probability Mass Function

An operation that calculates the chance that a given discrete random variable precisely equals a certain value.