A local partnership was considering the possibil…

            A local partnership was considering the possibility of liquidation. Capital account balances at that time were as follows. Profits and losses were divided on a 4:2:2:2 basis, respectively.         Ding, capital $ 60,000 Laurel, capital   67,000 Ezzard, capital   17,000 Tillman, capital   96,000   At that time, the partnership held noncash assets reported at $360,000 and liabilities of $120,000. There was no cash on hand at the time.If the assets could be sold for $228,000 and there are no liquidation expenses, what is the amount that Ding would receive from the liquidation?                         A)    $36,000.              B)    $0.            C)    $2,500.            D)    $38,720.            E)    $67,250.

Which of the following statements is true concerning the dis…

Which of the following statements is true concerning the distribution of safe payments?                         A)    The distribution of safe payments assumes that any capital deficit balances will prove to be a total loss to the partnership.                  B)    Safe payments are equal to the recorded capital account balances of those partners with capital account balances in excess of $0.            C)    The distribution of safe payments may only be made after all liabilities have been paid.            D)    In computing safe payments, partners with positive capital account balances are assumed to absorb an equal share of any deficit balance(s).            E)    There are no safe payments until the liquidation is complete.