Question

A local partnership is considering possible liquidation because one of the partners (Bell) is insolvent. Capital balances at the current time are as follows. Profits and losses are divided on a 4:3:2:1 basis, respectively.
Bell, capital . . . . . . . . . . . . . . . . . $50,000
Hardy, capital . . . . . . . . . . . . . . . . 56,000
Dennard, capital . . . . . . . . . . . . . 14,000
Suddath, capital . . . . . . . . . . . . . . 80,000
Bell’s creditors have filed a $21,000 claim against the partnership’s assets. The partnership currently holds assets reported at $300,000 and liabilities of $100,000. If the assets can be sold for $190,000, what is the minimum amount that Bell’s creditors would receive?
a. –0–
b. $2,000.
c. $2,800.
d. $6,000.



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  • CreatedOctober 04, 2014
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