Reference no: EM132728108

PAUL, GENE & KENZO have capital balances of $60,000, $20,000 and $50,000 each respectively and profit and loss percentages of 50%, 25%, 25% each respectively. The partnership also has liabilities of $20,000. In the first instalment sale, $50,000 of the non-cash assets were sold for $30,000. The partnership then paid 60% of their liabilities, incurred liquidating expenses of $10,000 and distributed cash to the partners.

Problem 1: If PAUL receives $10,000, how much was the total cash withheld by the partnership?

a) 28,000
b) 18,000
c) 20,000
d) 23,000