Dancey, Reese, Newman, and Jahn were partners who shared profits and losses on a 4:2:2:2 basis, respectively. They were beginning to liquidate their business. At the start of the process, Capital account balances were as follows: Which one of the following statements is true for a predistribution plan?
A) The first available $16,000 would go to Newman.
B) The first available $20,000 would go to Dancey.
C) The first available $8,000 would go to Jahn.
D) The first available $8,000 would go to Newman.
E) The first available $4,000 would go to Jahn.

Question

Dancey, Reese, Newman, and Jahn were partners who shared profits and losses on a 4:2:2:2 basis, respectively. They were beginning to liquidate their business. At the start of the process, Capital account balances were as follows:  Which one of the following statements is true for a predistribution plan?
A) The first available $16,000 would go to Newman. 
B) The first available $20,000 would go to Dancey. 
C) The first available $8,000 would go to Jahn. 
D) The first available $8,000 would go to Newman. 
E) The first available $4,000 would go to Jahn.

Quizplus · Accepted Answer

The Answer of Dancey, Reese, Newman, and Jahn were partners who shared profits and losses on a 4:2:2:2 basis, respectively. They were beginning to liquidate their business. At the start of the process, Capital account balances were as follows:  Which one of the following statements is true for a predistribution plan?
A) The first available $16,000 would go to Newman. 
B) The first available $20,000 would go to Dancey. 
C) The first available $8,000 would go to Jahn. 
D) The first available $8,000 would go to Newman. 
E) The first available $4,000 would go to Jahn.

Dancey, Reese, Newman, and Jahn Were Partners Who Shared Profits