Reference no: EM132787412

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?