Harding, Jones, and Sandy Is in the Process of Liquidating

question 70

Multiple Choice

Harding, Jones, and Sandy is in the process of liquidating and the partners have the following capital balances; $24,000, $24,000, and ($9,000) respectively. The partners share all profits and losses 16%, 48%, and 36%, respectively. Sandy has indicated that the ($9,000) deficit will be covered with a forthcoming contribution. The remaining partners have requested to immediately receive $20,000 in cash that is available. How should this cash be distributed?

• A) Harding $5,000; Jones $15,000.
• B) Harding $17,000; Jones $3,000.
• C) Harding $11,154; Jones $8,846.
• D) Harding $14,297; Jones $5,703.
• E) Harding $12,500; Jones $7,500.

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Definitions:

Temporal Bone

A large bone in the skull that houses structures of the ear and participates in the formation of the sides and base of the skull.

Sphenoid Bone

A complex bone at the base of the skull that supports the brain, forms part of the eye socket, and contains the sphenoidal sinuses.

Olecranon Process

The bony projection of the ulna at the elbow, which forms the point of the elbow and serves as an attachment for muscles of the forearm.

Ulna

A bone in the forearm that is located on the side opposite to the thumb, playing a key role in the movement of the wrist and elbow.