Reference no: EM132811161

On January 1, 20x1, the partners of ABC Co. decided to liquidate their partnership. The following information was made available:

Cash 80,000

Accounts receivable 240,000

Inventory 480,000

Equipment 1,200,000

Total 2,000,000

Accounts payable 120,000

Payable to B 80,000

A, Capital (20%) 400,000

B, Capital (30%) 600,000

C, Capital (50%) 800,000

Total 2,000,000

Information on the conversion of non-cash assets is as follows:

1. ?40,000 was collected on accounts receivable; the balance is uncollectible.
2. ?20,000 was received for the entire inventory.
3. The equipment was sold for ?200,000.
4. ?8,000 liquidation expenses were paid.
5. ?108,000 was paid to outside creditors, after offset of a ?12,000 credit memorandum received on January 2, 20x1.
6. All of the partners are personally solvent.

Problem 1: How much did B receive from the settlement of his interest in the partnership?