Problem:
Gonda, Herron, and Morse is considering possible liquidation because partner Morse is personally insolvent. The partners have the following capital balances: $60,000, $70,000, and $40,000, respectively, and share profits and losses 30%, 45%, and 25%, respectively. The partnership has $200,000 in noncash assets that can be sold for $150,000. The partnership has $10,000 cash on hand, and $40,000 in liabilities.
Required:
Question: What is the minimum that partner Morse's creditors would receive if they have filed a claim for $50,000?
A. $0.
B. $27,500.
C. $45,000.
D. $47,500.
E. $50,000.
Note: Please provide through step by step calculations.