Carney, Pierce, Menton, and Hoehn are partners who share profits and losses on a 4:3:2:1 basis, respectively. They are beginning to liquidate the business. At the start of this process, capital balances are Carney, capital $ 79,000 Pierce, capital 32,700 Menton, capital 62,000 Hoehn, capital 25,700 Which of the following statements is true? (1)Carney will collect a portion of any available cash before Hoehn receives money. (2)The first available $7,700 will go to Hoehn. (3)The first available $10,600 will go to Manton. (4) Carney will be the last partner to receive any available cash.
Carney, Pierce, Menton, and Hoehn are partners who share profits and losses on a 4:3:2:1 basis, respectively. They are beginning to liquidate the business. At the start of this process, capital balances are Carney, capital $ 79,000 Pierce, capital 32,700 Menton, capital 62,000 Hoehn, capital 25,700 Which of the following statements is true? (1)Carney will collect a portion of any available cash before Hoehn receives money. (2)The first available $7,700 will go to Hoehn. (3)The first available $10,600 will go to Manton. (4) Carney will be the last partner to receive any available cash.
Chapter13: Choice Of Business Entity—general Tax And Nontax Factors/formation
Section: Chapter Questions
Problem 55P
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Carney, Pierce, Menton, and Hoehn are partners who share
|
|
|
|
|
Carney, capital |
$ |
79,000 |
|
Pierce, capital |
|
32,700 |
|
Menton, capital |
|
62,000 |
|
Hoehn, capital |
|
25,700 |
Which of the following statements is true?
(1)Carney will collect a portion of any available cash before Hoehn receives money.
(2)The first available $7,700 will go to Hoehn.
(3)The first available $10,600 will go to Manton.
(4) Carney will be the last partner to receive any available cash.
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