A local partnership is considering possible liquidation because one of the partners (Bell) is insolvent. Capital balances at the current time are as follows. Profits and losses are divided on a 4:3:2:1 basis, respectively.
|
Bell, capital |
$50,000 |
|
Hardy, capital |
56,000 |
|
Dennard, capital |
14,000 |
|
Suddath, capital |
80,000 |
Bell’s creditors have filed a $21,000 claim against the partnership’s assets. The partnership currently holds assets reported at $300,000 and liabilities of $100,000. If the assets can be sold for $190,000, what is the minimum amount that Bell’s creditors would receive?
a. –0–
b. $2,000.
c. $2,800.
d. $6,000.