Asked by Mariano Davila III on Apr 26, 2024
Verified
The Salinas-Milliken partnership is terminated when creditor claims exceed partnership assets by $80000. Salinas is a millionaire and Milliken has no personal assets. Milliken's partnership interest is 75% and Salinas's is 25%. Creditors
A) must collect their claims equally from Milliken and Salinas.
B) may collect the entire $80000 from Salinas.
C) must collect their claims 75% from Milliken and 25% from Salinas.
D) may not require Salinas to use his personal assets to satisfy the $80000 in claims.
Creditor Claims
Rights or legal entitlements of creditors to receive payment or restitution from a debtor.
Partnership Interest
The ownership share or stake a particular partner has in a partnership, which determines their portion of the profits or losses.
Personal Assets
Items of value owned by an individual, including cash, investments, real estate, and personal belongings.
- Master the concept of allocating profits, losses, and liabilities between partners.
Verified Answer
Learning Objectives
- Master the concept of allocating profits, losses, and liabilities between partners.
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