Partners Eric and Jeremy Each Have $3,000 Capital Balances and Share

Partners Eric and Jeremy each have $3,000 capital balances and share income and losses in a 2:1 ratio for Eric and Jeremy,respectively.Cash equals $1,000,noncash assets are $10,000,and liabilities are $5,000.If all the noncash assets are sold for $4,000,and each partner is personally insolvent,Jeremy eventually will receive cash of:

A) $0.
B) $1,000.
C) $1,500.
D) $2,000.

Correct Answer:

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