Problemgonda herron and morse is considering possible, Ask an Expert

Accounting

Problem:

Gonda, Herron, and Morse is considering possible liquidation because partner Morse is personally insolvent. The partners have the following capital balances: $60,000, $70,000, and $40,000, respectively, and share profits and losses 30%, 45%, and 25%, respectively. The partnership has $200,000 in noncash assets that can be sold for $150,000. The partnership has $10,000 cash on hand, and $40,000 in liabilities.

Required:

Question: What is the minimum that partner Morse's creditors would receive if they have filed a claim for $50,000?

A. $0.

B. $27,500.

C. $45,000.

D. $47,500.

E. $50,000.

Note: Please provide through step by step calculations.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M91164762

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