A local partnership was considering the possibility of liquidation. Capital account balances at that time were as follows. Profits and losses were divided on a 4:2:2:2 basis, respectively. At that time, the partnership held noncash assets reported at $360,000 and liabilities of $120,000. There was no cash on hand at the time.If the assets could be sold for $228,000 and there are no liquidation expenses, what is the amount that Tillman would receive from the liquidation?
A) $36,000.
B) $0.
C) $2,500.
D) $38,250.
E) $67,250.

Question

A local partnership was considering the possibility of liquidation. Capital account balances at that time were as follows. Profits and losses were divided on a 4:2:2:2 basis, respectively.  At that time, the partnership held noncash assets reported at $360,000 and liabilities of $120,000. There was no cash on hand at the time.If the assets could be sold for $228,000 and there are no liquidation expenses, what is the amount that Tillman would receive from the liquidation?
A) $36,000. 
B) $0. 
C) $2,500. 
D) $38,250. 
E) $67,250.

Quizplus · Accepted Answer

The Answer is E

A Local Partnership Was Considering the Possibility of Liquidation