Dancey, Reese, Newman, and Jahn Were Partners Who Shared Profits

Dancey, Reese, Newman, and Jahn were partners who shared profits and losses on a 4:2:2:2 basis, respectively. They were beginning to liquidate their business. At the start of the process, capital balances were as follows: $$\begin{array} { l r } \text { Dancey, capital } & \$ 72,000 \\\text { Reese, capital } & 32,000 \\\text { Newman, capital } & 52,000 \\\text { Jahn, capital } & 24,000\end{array}$$
Which one of the following statements is true for a predistribution plan?

A) The first available $16,000 would go to Newman.
B) The first available $20,000 would go to Dancey.
C) The first available $8,000 would go to Jahn.
D) The first available $8,000 would go to Newman.
E) The first available $4,000 would go to Jahn.

Correct Answer:

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