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    Partnership liquidation

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    A local partnership was considering the possibility of
    liquidation since one of the partners (Ding) was insolvent.
    Capital balances at that time were as follows. Profits and
    losses were divided on a 4:2:2:2 basis, respectively.

    Ding, capital $60,000
    Laurel, capital 67,000
    Ezzard, capital 17,000
    Tillman, capital 96,000

    Ding's creditors filed a $25,000 claim against the
    partnership's assets. At that time, the partnership held
    assets reported at $360,000 and liabilities of $120,000.

    If the assets could be sold for $228,000, what is the minimum amount that Ding's creditors would have received?
    A) $36,000.
    B) $0.
    C) $2,500.
    D) $38,720.
    E) $67,250.

    If the assets could be sold for $228,000, what is the minimum amount that Laurel's creditors would have received?
    A) $36,000.
    B) $0.
    C) $2,500.
    D) $38,250.
    E) $67,250

    If the assets could be sold for $228,000, what is the minimum amount that Ezzard's creditors would have received?
    A) $36,000.
    B) $0.
    C) $2,500.
    D) $38,250.
    E) $67,250.

    If the assets could be sold, for $228,000 what is the minimum amount that Tillman's creditors would have received?
    A) $36,000.
    B) $0.
    C) $2,500.
    D) $38,250.
    E) $67,250.

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    https://brainmass.com/business/accounting/partnership-liquidation-253159

    Solution Summary

    The solution explains some multiple choice questions relating to partnership liquidation

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