Question

Harriet, Mickey, and Zack decide to liquidate their partnership. All assets are sold, and the liabilities are paid. Following these transactions, the capital balances and profit and loss percentages are as follows: Harriet, $25,400 and 30%; Mickey, ($4,300) and 40%; Zack, $46,200 and 30%. Mickey is unable to contribute any assets to reduce the deficit. How much cash will Harriet receive as a result of the partnership liquidation?

a. $25,400
b. $24,110
c. $21,100
d. $23,250

Answer 1

The answer is d. $23,250

Step-by-step explanation:

Harriet and Zack share the loss equally

Harriet will pay = $25,400 + ($4,300)/ 2 = $23,250