Bill, Page, Larry, and Scott have decided to terminate their partnership. The partnership's balance sheet at the time they decide to wind up is as follows: Cash$100,000 Accounts payable$100,000 Noncash Assets 300,000 Bill, Capital 25,000 Page, Capital 110,000 Larry, Capital 100,000 Scott, Capital 65,000 $400,000 Total$400,000 During the winding up of the partnership, the other assets are sold for $150,000 and the accounts payable are paid. Page and Larry are personally solvent, but Bill and Scott are personally insolvent. The partners share profits and losses in the ratio of 3:2:1:4.Based on the preceding information, what amount will be paid out to Bill upon liquidation of the partnership?
A. $25,000
B. $0
C. $2,500
D. $5,000
Answer: B
You might also like to view...
Which of the following is the best description of the purpose of financial reporting?
a. To allow users to access to the daily detailed records of a business. b. To help the users reach their decisions in an informed manner. c. To provide users with an assessment of how long the company will continue as a going concern. d. To allow users access to a list of all the individuals who owe the company money.
What can marketers expect to happen when a brand's promise is not regularly fulfilled?
What will be an ideal response?
Respond to the following: a. List some of the possible groups of financial statement users. b. What is meant by “user diversity,” and does user diversity create a potential problem?
What will be an ideal response?
What is an appropriate constraint for this scenario?
A) ZG + YG + XG + WG + VG ? 1 B) ZG + YG + XG + WG + VG = 1 C) 9ZG + 3YG + 4XG + 1WG + 4VG ? 1 D) 9ZG + 3YG + 4XG + 1WG + 4VG = 1