Gonda, Herron, and Morse Is Considering Possible Liquidation Because Partner

question 1

Multiple Choice

Gonda, Herron, and Morse is considering possible liquidation because partner Morse is personally insolvent. The partners have the following capital balances: $60,000, $70,000, and $40,000, respectively, and share profits and losses 30%, 45%, and 25%, respectively. The partnership has $200,000 in noncash assets that can be sold for $150,000. The partnership has $10,000 cash on hand, and $40,000 in liabilities. What is the minimum that partner Morse's creditors would receive if they have filed a claim for $50,000?

• A) $0.
• B) $27,500.
• C) $45,000.
• D) $47,500.
• E) $50,000.

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Definitions:

Chlamydia

A sexually transmitted infection caused by the bacterium Chlamydia trachomatis, often asymptomatic but can lead to serious reproductive problems if untreated.

Infertility

The inability to conceive a child after one year of regular, unprotected intercourse.

Sexually Transmitted Infections

Refers to infections that are primarily spread through sexual contact, affecting both males and females.

Infections

The invasion and multiplication of microorganisms such as bacteria, viruses, and fungi in body tissues, causing disease.