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Sophia and Thomas Are in Business as the ST Partnership

Question 72

Multiple Choice

Sophia and Thomas are in business as the ST partnership. The partnership is undergoing an installment liquidation. Sophia and Thomas share income in a 4:1 ratio, and have current capital balances of $40,000 and $70,000, respectively. $30,000 in cash is available for distribution. Assuming all liabilities have been paid, what is the amount of the safe payment to Thomas?


A) $ 0
B) $20,000
C) $24,000
D) $30,000

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