Ch. 15 Solutions - Multiple Choice Questions 1. In a...

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Multiple Choice Questions 1. In a partnership liquidation, how is the final allocation of business assets made to the partners? A. equally B. according to the profit and loss ratio C. according to the balances of the partners’ loan and capital accounts D. according to the initial investments made by the partners E. according to the method stipulated by the partnership agreement 2. A partnership is in the process of liquidating and is currently reporting the following capital balances. Marla, Capital (50% share of all profits and losses) $ 80,000 Barbara, Capital (30%) 60,000 Roberta, Capital (20%) (24,000) Roberta has indicated that the $24,000 deficit will be covered by a forthcoming contribution. However, the two remaining partners have asked to receive the $116,000 in cash that is presently available. How much of this money should each partner be given? Marla Barbara A. $65,000 $51,000 B. $81,000 $35,000 C. $58,000 $58,000 D. $85,000 $31,000 E. $72,000 $44,000 3. A partnership is considering the possibility of liquidation because one of the partners, Thomas, is insolvent. Capital balances at the current time are as follows, and profits and losses are divided on a 6:3:1 basis, respectively. George, Capital $ 65,000 Stewart, Capital 82,000 Thomas, Capital 53,000 Thomas’ creditors have filed a $40,000 claim against the partnership’s assets. The partnership currently holds assets reported at $300,000 and liabilities of $100,000. If the assets can be sold for $125,000, what is the minimum amount that Thomas’ creditors would receive? A. $25,000 B. $26,000 C. $21,000 D. $30,000 E. $27,000 1
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Ch. 15 Solutions - Multiple Choice Questions 1. In a...

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