Question: Joe Creel owned a NASCAR collectibles business named Joe s Racing

Joe Creel owned a NASCAR collectibles business named Joe's Racing Collectibles. In 1994, Creel brought Arnold Lilly and Roy Altizer into the business, which they reformed as a partnership named Joe's Racing. Creel contributed as capital to the partnership inventory and supplies of the old business, valued at $15,000. Lilly and Altizer each contributed $6,666 in cash to the partnership, and each paid $3,333 to Creel for his rights in the existing business. The partners agreed to share profits and losses with 52 percent going to Creel and 24 percent each to Lilly and Altizer. Less than a year later, Creel died and his wife sought to receive the value of his interest in the partnership. An accountant valued the partnership at $44,589.44. The partnership's creditors were the accountant for $875, Mrs. Creel $495, Lilly $2,187, and Altizer $900. What was the value of the Creel's partnership interest?

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  • CreatedJuly 16, 2014
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