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Problem 1: Gonda, Herron and Morse is considering possible liquidation because Morse is insolvent. The partners have the following capital balances: P60,000, P70,000 and P40,000, respectively and share profits and losses 30%, 45% and 25%, respectively. The partnership has P200,000 in assets that can be sold for P150,000. What is the minimum that Morse's creditors would receive if they have filed a claim for P50,000?
A. P50,000
B. P-0-
C. P45,000
D. P27,500
A business simulation game that is used by colleges and universities all over the world has students submit decisions over the Internet.
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