The Keller, Long, and Mason partnership had the following balance sheet just before entering liquidation: Keller, Long, and Mason share profits and losses in a ratio of 2:4:4.Assume that noncash assets were sold for $60,000 and liquidation expenses in the amount of $18,500 were incurred. If Long was personally insolvent and could not contribute any assets to the partnership, and Keller and Mason were both solvent, what amount of cash would Keller receive from the distribution of partnership assets?
A) $0.
B) $60,500.
C) $62,300.
D) $58,700.
E) $64,100.

Question

The Keller, Long, and Mason partnership had the following balance sheet just before entering liquidation:  Keller, Long, and Mason share profits and losses in a ratio of 2:4:4.Assume that noncash assets were sold for $60,000 and liquidation expenses in the amount of $18,500 were incurred. If Long was personally insolvent and could not contribute any assets to the partnership, and Keller and Mason were both solvent, what amount of cash would Keller receive from the distribution of partnership assets?
A) $0. 
B) $60,500. 
C) $62,300. 
D) $58,700. 
E) $64,100.

Quizplus · Accepted Answer

The Answer of The Keller, Long, and Mason partnership had the following balance sheet just before entering liquidation:  Keller, Long, and Mason share profits and losses in a ratio of 2:4:4.Assume that noncash assets were sold for $60,000 and liquidation expenses in the amount of $18,500 were incurred. If Long was personally insolvent and could not contribute any assets to the partnership, and Keller and Mason were both solvent, what amount of cash would Keller receive from the distribution of partnership assets?
A) $0. 
B) $60,500. 
C) $62,300. 
D) $58,700. 
E) $64,100.

The Keller, Long, and Mason Partnership Had the Following Balance