Find how much did b receive from the settlement of interest

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Reference no: EM132805733

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?

Reference no: EM132805733

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