# 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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