A partnership is considering possible liquidation because one of the partners (Bell) is personally insolvent. Profits and losses are divided on a 4:3:2:1 basis, respectively. Capital balances at the current time are Bell, capital Hardy, capital Dennard, capital Suddath, capital $76,000 66,000 10,000 90,000 Bell's creditors have filed a $31,000 claim against the partnership's assets. The partnership currently holds assets of $400,000 and liabilities of $158,000. If the assets can be sold for $240,000, what is the minimum amount that Bell's creditors would receive?
A partnership is considering possible liquidation because one of the partners (Bell) is personally insolvent. Profits and losses are divided on a 4:3:2:1 basis, respectively. Capital balances at the current time are Bell, capital Hardy, capital Dennard, capital Suddath, capital $76,000 66,000 10,000 90,000 Bell's creditors have filed a $31,000 claim against the partnership's assets. The partnership currently holds assets of $400,000 and liabilities of $158,000. If the assets can be sold for $240,000, what is the minimum amount that Bell's creditors would receive?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Bell’s creditors have filed a $31,000 claim against the partnership’s assets. The partnership currently holds assets of $400,000 and liabilities of $158,000. If the assets can be sold for $240,000, what is the minimum amount that Bell’s creditors would receive?
Multiple Choice
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$1,000
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$3,200
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$12,000
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$0
Transcribed Image Text:A partnership is considering possible liquidation because one of the partners (Bell) is personally insolvent. Profits and losses are
divided on a 4:3:2:1 basis, respectively. Capital balances at the current time are
Bell, capital
Hardy, capital
Dennard, capital
Suddath, capital
$76,000
66,000
10,000
90,000
Bell's creditors have filed a $31,000 claim against the partnership's assets. The partnership currently holds assets of $400,000
and liabilities of $158,000. If the assets can be sold for $240,000, what is the minimum amount that Bell's creditors would
receive?
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