Problem A local partnership was considering the possibility of liquidation since one of the partners (Ding) was insolvent.
Capital 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 17,000
Tillman, capital 96,000
Ding's creditors filed a $25,000 claim against the partnership's assets. At that time, the partnership held assets reported at $360,000 and liabilities of $120,000.
1) If the assets could be sold for $228,000, what is the minimum amount that Ding's creditors would have received?
A) $36,000.
B) $0.
C) $2,500.
D) $38,720.
E) $67,250.
2) If the assets could be sold for $228,000, what is the minimum amount that Laurel's creditors would have received?
A) $36,000.
B) $0.
C) $2,500.
D) $38,250.
E) $67,250
3) If the assets could be sold for $228,000, what is the minimum amount that Ezzard's creditors would have received?
A) $36,000.
B) $0.
C) $2,500.
D) $38,250.
E) $67,250.
4) If the assets could be sold, for $228,000 what is the minimum amount that Tillman's creditors would have received?
A) $36,000.
B) $0.
C) $2,500.
D) $38,250.
E) $67,250.