The Keaton, Lewis, and Meador partnership had the following balance sheet just before entering liquidation: Cash$100,000 Liabilities$40,000Noncash assets 210,000 Keaton, Capital 90,000 Lewis, Capital 60,000 Meador, Capital 120,000Total$310,000 Total$310,000??Keaton, Lewis, and Meador share profits and losses in a ratio of 2:4:4.?The partnership feels confident it will be able to eventually sell the noncash assets and wants to distribute some cash before paying liabilities. Assuming there will be no liquidation expenses, how much would each partner receive of a total $60,000 distribution of cash?? KeatonLewisMeadorA)$40,000 $0 $20,000 B)$12,000 $24,000 $24,000 C)$20,000 $13,333 $26,667 D)$60,000 $0 $0 E)$10,000 $0 $50,000
A. Option D.
B. Option B.
C. Option E.
D. Option A.
E. Option C.
Answer: D
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