Before liquidating any assets, the partners determined the amount of cash for safe payments and distributed it. The noncash assets were then sold for $120,000, and the liquidation expenses of $5,000 were paid. How much of the $120,000 would be distributed to the partners? (Hint: Either a predistribution plan or a schedule of safe payments would be appropriate for solving this item) $$\begin{array} { | l | l | r | r | }
\hline & \text { Henry } & { \text { Isaac } } & { \text { Jacobs } } \
\hline \text { A) } & \$ 33,000 & \$ 36,000 & \$ 51,000 \
\hline \text { B) } & \$ 28,000 & \$ 36,000 & \$ 56,000 \
\hline \text { C) } & \$ 29,333 & \$ 32,000 & \$ 58,667 \
\hline \text { D) } & \$ 24,000 & \$ 48,000 & \$ 48,000 \
\hline \text { E) } & \$ 38,000 & \$ 26,000 & \$ 56,000 \
\hline
\end{array}$$

Question

Before liquidating any assets, the partners determined the amount of cash for safe payments and distributed it. The noncash assets were then sold for $120,000, and the liquidation expenses of $5,000 were paid. How much of the $120,000 would be distributed to the partners? (Hint: Either a predistribution plan or a schedule of safe payments would be appropriate for solving this item) $$\begin{array} { | l | l | r | r | } 
\hline & \text { Henry } & { \text { Isaac } } & { \text { Jacobs } } \
\hline \text { A) } & \$ 33,000 & \$ 36,000 & \$ 51,000 \
\hline \text { B) } & \$ 28,000 & \$ 36,000 & \$ 56,000 \
\hline \text { C) } & \$ 29,333 & \$ 32,000 & \$ 58,667 \
\hline \text { D) } & \$ 24,000 & \$ 48,000 & \$ 48,000 \
\hline \text { E) } & \$ 38,000 & \$ 26,000 & \$ 56,000 \
\hline
\end{array}$$

Quizplus · Accepted Answer

After paying the liquidation expenses of $5,000 from the $120,000, $115,000 remains to be distributed to the partners. The distribution is based on the partners' capital balances or profit-sharing ratios, which aligns with option B.

Before Liquidating Any Assets, the Partners Determined the Amount of Cash