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