Author: Anonymous

The Allen, Bevell, and Carter partnership began the process of liquidation with the following balance sheet:         Cash $ 25,000   Liabilities $ 175,000 Noncash assets   500,000   Allen, capital   90,000         Bevell, capital   100,000         Carter, capital   160,000 Total $ 525,000   Total $ 525,000   Allen, Bevell, and Carter share profits and losses in a ratio of 3:2:5. Liquidation expenses are expected to be $14,000.Assuming that the noncash assets were sold for $150,000, which partner(s) would have been required to contribute assets to the partnership to cover a deficit in his or her capital account, prior to considering the liquidation expenses incurred?                        A)    Allen.                  B)    Bevell.            C)    Carter.            D)    Allen and Carter.            E)    Allen and Bevell.

The boys created risk and uncertainty for themselves by: 

We know that country X has an income distribution that is highly equal. Its gini coefficient is more likely to be something like .87 than .22. 

The graph above illustrates a Lorenz curve. The % of the population is on the horizontal axis and the % of income is on the vertical axis. Which of the following is correct? CHOOSE ALL THAT APPLY. 

The following table illustrates what can be produced in 1 day with the same stock of resources in France and Germany. Use the information to answer the following questions.     cheese  beef France 34 40 Germany 56 20 Based on the information in the table, __________ has the comparative advantage and absolute advantage in cheese and __________ has the comparative advantage and absolute advantage in beef. 

The Henry, Isaac, and Jacobs partnership was about to enter liquidation with the following account balances:         Cash $ 90,000   Liabilities $ 60,000 Noncash assets   300,000   Henry,capital   80,000         Isaac, capital   110,000         Jacobs, capital   140,000 Total $ 390,000   Total $ 390,000   Estimated expenses of liquidation were $5,000. Henry, Isaac, and Jacobs shared profits and losses in a ratio of 2:4:4.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. The liquidation expenses of $5,000 were paid prior to the sale of noncash assets. How would the $120,000 be distributed to the partners? (Hint: Either a predistribution plan or a statement of liquidation would be appropriate for solving this item.)     Henry Isaac Jacobs A) $ 33,000   $ 36,000   $ 51,000   B) $ 28,000   $ 36,000   $ 56,000   C) $ 29,333   $ 32,000   $ 58,667   D) $ 24,000   $ 48,000   $ 48,000   E) $ 38,000   $ 26,000   $ 56,000                             A)    Option A.                        B)    Option B.            C)    Option C.            D)    Option D.            E)    Option E.

Which of the following are true concerning Burma? (check all that apply)

A proposed schedule of liquidation is developed

There are a lot of trade agreements in the world, but we do not see global free trade. 

The country with the lower opportunity cost has the comparative advantage in that activity.