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Chico and Amos Decide to Be Partners in the Storage

Question 5

Multiple Choice

Chico and Amos decide to be partners in the storage and delivery business.Chico has some land with buildings to contribute,and Amos has a large van and a small truck to contribute.After two years (and sharing profits equally) ,they decide that the business is not worth all the trouble,so they liquidate.The land and buildings bring $45 000,and the two vehicles bring $7000.How should the proceeds be divided?


A) In absence of a clear agreement,the Partnership Act gives each back his original investment.
B) It all depends on their original intentions as to what was partnership property.
C) Chico should get the $45 000.
D) It depends on whether they want to remain friends.
E) Since they are equal partners,they should each get $26 000.

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