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A local partnership was considering the possibility of liquidation. Capital account balances at that time were as follows. Profits and losses were divided on a 4:2:2:2 basi respectively. Ding, capital $60,000 Laurel, capital 67,000 Ezzard, capital 10,000 Tillman, capital 96,000 At that time, the partnership held noncash assets reported at $380,000 and liabilities $140,000. There was no cash on hand at the time. f the assets could be sold for $300,000 and there are no liquidation expenses, what he amount that Laurel would receive from the liquidation? a. $8,000 b. $38,750 C$51,000 d. $2,500 e. $49,500

A local partnership was considering the possibility of liquidation. Capital account balances at that time were as follows. Profits and losses were divided on a 4:2:2:2 basi respectively. Ding, capital $60,000 Laurel, capital 67,000 Ezzard, capital 10,000 Tillman, capital 96,000 At that time, the partnership held noncash assets reported at $380,000 and liabilities $140,000. There was no cash on hand at the time. f the assets could be sold for $300,000 and there are no liquidation expenses, what he amount that Laurel would receive from the liquidation? a. $8,000 b. $38,750 C$51,000 d. $2,500 e. $49,500

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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A local partnership was considering the possibility of liquidation. Capital account 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 10,000 Tillman, capital 96,000 At that time, the partnership held noncash assets reported at $380,000 and liabilities o $140,000. There was no cash on hand at the time. If the assets could be sold for $300,000 and there are no liquidation expenses, what is the amount that Laurel would receive from the liquidation? O a. $8,000 O b. $38,750 O $51,000 O d. $2,500 Oe. $49,500
Transcribed Image Text:A local partnership was considering the possibility of liquidation. Capital account 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 10,000 Tillman, capital 96,000 At that time, the partnership held noncash assets reported at $380,000 and liabilities o $140,000. There was no cash on hand at the time. If the assets could be sold for $300,000 and there are no liquidation expenses, what is the amount that Laurel would receive from the liquidation? O a. $8,000 O b. $38,750 O $51,000 O d. $2,500 Oe. $49,500
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