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    Sister99's Avatar
    Sister99 Posts: 3, Reputation: 1
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    #1

    Aug 16, 2009, 07:48 AM
    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
    morgaine300's Avatar
    morgaine300 Posts: 6,561, Reputation: 276
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    #2

    Aug 16, 2009, 04:22 PM

    Please read the guidelines for posting homework problems:
    Ask Me Help Desk - Announcements in Forum : Homework Help
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