A partnership is currently holding $400,000 in assets and $234,000 in liabilities. The partnership is to be

Question:

A partnership is currently holding $400,000 in assets and $234,000 in liabilities. The partnership is to be liquidated, and $20,000 is the best estimation of the expenses that will be incurred during this process. The four partners share profits and losses as shown. Capital balances at the start of the liquidation follow:

Kevin, capital (40%) . . . . . . . . . . . $59,000

Michael, capital (30%) . . . . . . . . . 39,000

Brendan, capital (10%) . . . . . . . . 34,000

Jonathan, capital (20%) . . . . . . . . 34,000

The partners realize that Brendan will be the first partner to start receiving cash. How much cash will Brendan receive before any of the other partners collect any cash?

a. $12,250.

b. $14,750.

c. $17,000.

d. $19,500.

Liquidation
Liquidation in finance and economics is the process of bringing a business to an end and distributing its assets to claimants. It is an event that usually occurs when a company is insolvent, meaning it cannot pay its obligations when they are due.... Partnership
A legal form of business operation between two or more individuals who share management and profits. A Written agreement between two or more individuals who join as partners to form and carry on a for-profit business. Among other things, it states...