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$79,000Pierce, capital 32,700Menton, capital 62,000Hoehn, 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.

Liquidation of business mean closing down the business , selling all assets , making payment to all…

Answered: Carney, Pierce, Menton, and Hoehn are…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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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.

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