How much of the $31,000 in the cash account should Justice receive?

Question

Quizplus · Accepted Answer

To determine how much of the $31,000 in the cash account should Justice receive, we need to first calculate the total amount of assets in the account.

Total assets = Cash account balance + market value of securities 
Total assets = $31,000 + $23,000 = $54,000

We can then calculate what percentage of the total assets Justice is entitled to receive:

% share of Justice = (Justice's account balance / Total assets) x 100

% share of Justice = ($20,000 / $54,000) x 100 = 37.04%

Finally, we can calculate how much this percentage corresponds to in dollars:

Amount for Justice = % share of Justice x Total assets

Amount for Justice = 37.04% x $31,000 = $11,487.20

Adding the $4,046.80 in the securities account, the total amount that Justice is entitled to receive is $15,534. Therefore, the best choice is B.

How Much of the $31,000 in the Cash Account Should