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When Peter Gave Notice to Paul and Mary of Dissolution

Question 3

Multiple Choice

When Peter gave notice to Paul and Mary of dissolution of their entertainment partnership business, the capital accounts were as follows:
Peter: $30,000
Paul: $50,000
Mary: $20,000
The partnership assets were liquidated to $30,000. Outstanding liabilities to third parties totaled $39,000. Peter, Paul and Mary will each respectively receive:


A) $20,000; $30,000; $50,000.
B) $27,000; $47,000; $17,000.
C) $27,000; $45,000; $18,000.
D) $30,000; $50,000; $20,000.
E) $28,500; $41,250; $16,000.

Correct Answer:

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