The Abrams,Bartle,and Creighton Partnership Began the Process of Liquidation with the Following

question 40

Multiple Choice

The Abrams,Bartle,and Creighton partnership began the process of liquidation with the following balance sheet: $\begin{array}{lrlr}\text { Cash } & \$ 16,000 & \text { Liabilities } & \$ 150,000 \\\text { Noncash assets } & 434,000 & \text { Abrams, capital } & 80,000\\&&\text { Bartle, capital } & 90,000 \\&&\text { Creighton, capital } & 130,000 \\\text { Total }&\$450,000&\text { Total } & \$ 450,000\end{array}$ Abrams,Bartle,and Creighton share profits and losses in a ratio of 3:2:5.Liquidation expenses are expected to be $12,000.
The noncash assets were sold for $134,000.Which partner(s) would have had to contribute assets to the partnership to cover a deficit in his or her capital account?

• A)Abrams.
• B)Bartle.
• C)Creighton.
• D)Abrams and Creighton.
• E)Abrams and Bartle.

---

Definitions:

Closed System

A physical system that does not allow certain types of transfers (such as transfer of mass) in or out of the system.

Structural Mobility

The mobility of individuals or groups within or between social strata, facilitated by changes in the economy or the social structure of a society, rather than by personal achievement.

Social Class Ladder

A metaphorical representation of the stratification and hierarchical nature of society based on socio-economic status.

Societal Changes

Alterations in the social structures, institutions, and patterns of behavior within a society over time.