partnership liquidated on an installment basis
Bauer and Flynn share profits and loses in the ratio of 60/40.
The after-closing trial balance of their partnership just prior to liquidation showed:
Cash $5,000.00
Other Assets $80,000.00
Liabilities $60,000.00
Bauer, Capital $20,000.00
Flynn, Capital $5,000.00
Assuming the partnership is liquidated on an installment basis and Other Assets with a book value of $50,000.00 are sold for $70,000.00, which one of the following amounts may be paid to Bauer at that time?
A) $32,000
B) $20,000
C) $15,000
D) $12,500
Thanks
