Hetzer and Whalen partnership is insolvent and has liabilities of $5,000. Other information follows: What is Hetzer's required contribution if the partnership creditors move against Whalen first.

Question

Hetzer and Whalen partnership is insolvent and has liabilities of $5,000. Other information follows:  What is Hetzer's required contribution if the partnership creditors move against Whalen first.

Quizplus · Accepted Answer

Whalen would be required to contribute:
[15,000 / (15,000 + 10,000)] x 8,000 = 4,800
Hetzer would have to contribute 5,000 - 4,800 = 200 to meet creditor demands.

Hetzer and Whalen Partnership Is Insolvent and Has Liabilities of $5,000