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

question 31

Multiple Choice

The Abrams, Bartle, and Creighton partnership began the process of liquidation with the following balance sheet: $$\begin{array} { l l l r r } \text { Cash } & \$ 16,000 & & \text { Liabilities } & \$ 150,000 \\\text { Noncash assets } & 434,000 & & \text { Abrams, capital } & 80,000 \\& & & \text { Bartle, capital } & 90,000 \\& & & \text { Creighton, capital } & 130,000 \\\text { Total } & \underline { \$ 450,000 } & & \text { Total } & \$ 450,000 \\\hline \hline\end{array}$$
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:

Overcoming Resistance

Strategies and approaches used to manage and mitigate resistance to change within organizations to ensure successful implementation of new ideas or practices.

Survey Feedback

The collection of data from organizational members and the provision of feedback about the results.

Reengineering

The fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in critical measures of performance such as cost, quality, service, and speed.

Transformational Leaders

Leaders who inspire and motivate their followers to exceed their own self-interests for the good of the organization, often by embodying vision and change.