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The articles of partnership of the firm of Wilson and Company provide the following: William Smith to contribute $50,000; to receive interest thereon at 13 percent per annum and to devote such time as he may be able to give; and to receive 30 percent of the profits. John Jones to contribute $50,000; to receive interest on same at 13 percent per annum; to give all of his time to the business; and to receive 30 percent of the profits. Henry Wilson to contribute all of his time to the business and to receive 20 percent of the profits. James Brown to contribute all of his time to the business and to receive 20 percent of the profits. There is no provision for sharing losses.
After six years of operation, the firm is dissolved and wound up. No distributions to partners have been made since the partnership was formed. The partnership assets are sold for $400,000 with a loss of $198,000. Liabilities to creditors total $420,000. What are the rights and liabilities of the respective parties?
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Mountain Man Brewing, a family owned business where Chris Prangel, the son of the president joins. Due to increase in the preference for light beer drinkers, Chris Prangel wants to introduce light beer version in Mountain Man. An analysis into the la..
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