A partnership has the following balance sheet just before final liquidation is to begin:
|
Cash |
$26,000 |
Liabilities |
$50,000 |
|
Inventory |
31,000 |
Art, capital (40% of profits and losses) |
18,000 |
|
Other assets |
62,000 |
Raymond, capital (30%) |
25,000 |
|
Darby, capital (30%) |
26,000 |
||
|
Total |
$119,000 |
Total |
$119,000 |
Liquidation expenses are estimated to be $12,000. The other assets are sold for $40,000. What distribution can be made to the partners?
a. –0– to Art, $1,500 to Raymond, $2,500 to Darby.
b. $1,333 to Art, $1,333 to Raymond, $1,334 to Darby.
c. –0– to Art, $1,200 to Raymond, $2,800 to Darby.
d. $600 to Art, $1,200 to Raymond, $2,200 to Darby.