Carney, Pierce, Menton, and Hoehn are partners who share profits and losses on a 4:3:2:1 basis, respectively. They are beginning to liquidate the business. At the start of this process, capital balances are         Carney, capital $ 79,000 Pierce, capital   32,700 Menton, capital   62,000 Hoehn, capital   25,700     Which of the following statements is true? (1)Carney will collect a portion of any available cash before Hoehn receives money. (2)The first available $7,700 will go to Hoehn. (3)The first available $10,600 will go to Manton. (4) Carney will be the last partner to receive any available cash.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Carney, Pierce, Menton, and Hoehn are partners who share profits and losses on a 4:3:2:1 basis, respectively. They are beginning to liquidate the business. At the start of this process, capital balances are

 

 

 

 

Carney, capital

$

79,000

Pierce, capital

 

32,700

Menton, capital

 

62,000

Hoehn, capital

 

25,700

 

 

Which of the following statements is true?

(1)Carney will collect a portion of any available cash before Hoehn receives money.

(2)The first available $7,700 will go to Hoehn.

(3)The first available $10,600 will go to Manton.

(4) Carney will be the last partner to receive any available cash.

 

 

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