The xy partnership is undergoing an installment liquidation


Question: The XY partnership is undergoing an installment liquidation. X and Y share income equally, and have current capital balances of $30,000 and $60,000, respectively. $20,000 in cash is available for distribution. Assuming all liabilities have been paid, what is the amount of the safe payment to partner X?

(a) $ -0-

(b) $ 5,000

(c) $10,000

(d) $15,000

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Accounting Basics: The xy partnership is undergoing an installment liquidation
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