A partnership has the following capital balances: X (50 percent of profits and losses) = $150,000; Y

Question:

A partnership has the following capital balances: X (50 percent of profits and losses) = $150,000; Y (30 percent of profits and losses) = $120,000; Z (20 percent of profits and losses) = $80,000. If the partnership is to be liquidated and $30,000 becomes immediately available, who gets that money?
a. $0 to X, $18,000 to Y, $12,000 to Z.
b. $15,000 to X, $9,000 to Y, $6,000 to Z.
c. $12,800 to X, $8,600 to Y, $8,600 to Z.
d. $24,000 to X, $6,000 to Y, $0 to Z.
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...
Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Advanced Accounting

ISBN: 9781260247824

14th Edition

Authors: Joe Ben Hoyle, Thomas Schaefer, Timothy Doupnik

Question Posted: