Partnership is liquidated on an installment basis

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Reference no: EM13259768

Bauer and Flynn share profits and loses in the ratio of 60/40.

The after-closing trial balance of their partnership justprior to liquidation showed:

Cash: $5,000
Other assets: $80,000
Liabilities: $ 60,000
Bauer,Capital: $20,000
Flynn,Capital: $5,000

Assuming the partnership is liquidated on an installment basis and Other Assets with ahbook value of $50,000 are sold for $70,000,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

Reference no: EM13259768

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