The following account balances were available for the Perry, Quincy, and Renquist partnership just before it entered liquidation: Included in Perry's Capital account balance is a $20,000 partnership loan owed to Perry. Perry, Quincy, and Renquist shared profits and losses in a ratio of 2:4:4. Liquidation expenses were expected to be $15,000. All partners were insolvent.For what amount would noncash assets need to be sold to generate enough cash in order that at least one partner would receive some cash upon liquidation?
A) Any amount in excess of $185,000.
B) Any amount in excess of $170,000.
C) Any amount in excess of $165,000.
D) Any amount in excess of $95,000.
E) Any amount in excess of $90,000.

Question

The following account balances were available for the Perry, Quincy, and Renquist partnership just before it entered liquidation:  Included in Perry's Capital account balance is a $20,000 partnership loan owed to Perry. Perry, Quincy, and Renquist shared profits and losses in a ratio of 2:4:4. Liquidation expenses were expected to be $15,000. All partners were insolvent.For what amount would noncash assets need to be sold to generate enough cash in order that at least one partner would receive some cash upon liquidation?
A) Any amount in excess of $185,000. 
B) Any amount in excess of $170,000. 
C) Any amount in excess of $165,000. 
D) Any amount in excess of $95,000. 
E) Any amount in excess of $90,000.

Quizplus · Accepted Answer

The Answer of The following account balances were available for the Perry, Quincy, and Renquist partnership just before it entered liquidation:  Included in Perry's Capital account balance is a $20,000 partnership loan owed to Perry. Perry, Quincy, and Renquist shared profits and losses in a ratio of 2:4:4. Liquidation expenses were expected to be $15,000. All partners were insolvent.For what amount would noncash assets need to be sold to generate enough cash in order that at least one partner would receive some cash upon liquidation?
A) Any amount in excess of $185,000. 
B) Any amount in excess of $170,000. 
C) Any amount in excess of $165,000. 
D) Any amount in excess of $95,000. 
E) Any amount in excess of $90,000.

The Following Account Balances Were Available for the Perry, Quincy