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A partnership is considering possible liquidation because one of the partners Bell is personally insolvent Profits and losses are divided on

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 $ 88,500
Hardy, capital   80,000
Dennard, capital   19,000
Suddath, capital   95,000
 

Bell’s creditors have filed a $36,000 claim against the partnership’s assets. The partnership currently holds assets of $450,000 and liabilities of $167,500. If the assets can be sold for $265,000, what is the minimum amount that Bell’s creditors would receive?

rev: 11_27_2017_QC_CS-110177

Multiple Choice

  • $5,500

  • $7,300

  • $0

  • $14,500

Feb 08 2020 View more View Less

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