Partners A, B, and C have capital account balances of $60,000 each. The profit and loss ratio is 5:2:3 respectively. In the process of liquidating the partnership, noncash assets with a carrying amount of $50,000 are sold for $20,000. The balance of Partner B's Capital account after the sale is

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The loss on sale of noncash assets is $30,000 ($50,000 - $20,000). This loss is allocated to the partners in the profit and loss ratio, which is 5:2:3. Partner B's share of the loss is $10,000 ($30,000 x 2/10). Partner B's capital account balance after the sale is $50,000 (original balance) - $10,000 (share of loss) = $40,000.

Partners A, B, and C Have Capital Account Balances of $60,000