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A partnership is considering possible liquidation because one of the partners (Bell) is personally insolvent. Profits...

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 $ 96,000
Hardy, capital 83,000
Dennard, capital 16,000
Suddath, capital 98,000

Bell’s creditors have filed a $39,000 claim against the partnership’s assets. The partnership currently holds assets of $480,000 and liabilities of $187,000. If the assets can be sold for $280,000, what is the minimum amount that Bell’s creditors would receive?

rev: 11_27_2017_QC_CS-110177

Multiple Choice

  • $6,400

  • $16,000

  • $0

  • $4,000

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Answer #1

The minimum amount that Bell’s creditors would receive is $4000

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