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Partners Thomas, Adams and Jones Have Capital Balances of $24,000

Question 48

Multiple Choice

Partners Thomas, Adams and Jones have capital balances of $24,000, $45,000, and $90,000 respectively. They split profits in the ratio of 3:3:4, respectively. Under a predistribution plan, one of the partners will get the following total amount in liquidation before any other partners get anything:


A) $22,500
B) $30,000
C) $40,000
D) $75,000

Correct Answer:

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