Question: A local partnership is liquidating and is currently reporting the following capital balances: Angela, capital (50% share of all profits and losses) . . .

A local partnership is liquidating and is currently reporting the following capital balances:

Angela, capital (50% share of all profits and losses) . . . . . . . . . . . $ 19,000

Woodrow, capital (30%) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18,000

Cassidy, capital (20%) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (12,000)

Cassidy has indicated that a forthcoming contribution will cover the $12,000 deficit. However, the two remaining partners have asked to receive the $25,000 in cash that is presently available. How much of this money should each of the partners be given?

a. Angela, $13,000; Woodrow, $12,000.

b. Angela, $11,500; Woodrow, $13,500.

c. Angela, $12,000; Woodrow, $13,000.

d. Angela, $12,500; Woodrow, $12,500.

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