A Local Partnership Has Assets of Cash of $5,000 and a Building

question 68

Multiple Choice

A local partnership has assets of cash of $5,000 and a building recorded at $80,000. All liabilities have been paid. The partners' capital accounts are as follows Harry $40,000, Landers $30,000 and Waters 15,000. The partners share profits and losses 4:4:2.
If the building is sold for $50,000, how much cash will Harry receive in the final settlement?

• A) $5,000.
• B) $9,000.
• C) $18,000.
• D) $28,000.
• E) $55,000.

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Definitions:

Price Level

A comprehensive calculation of the average price for all goods and services in the economy.

Real GDP

The measurement of a country's economic output adjusted for price changes (inflation or deflation), reflecting the true value of all goods and services produced.

Money Supply Curve

A graphical representation showing the relationship between the quantity of money in an economy and the level of interest rates.

Equilibrium Interest Rate

The interest rate at which the supply of funds (savings) equals the demand for funds (loans), resulting in market equilibrium.