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The DE Partnership Is Undergoing an Installment Liquidation

Question 75

Multiple Choice

The DE partnership is undergoing an installment liquidation. Partners D and E share income in a 3:2 ratio and have current capital balances of $60,000 and $80,000, respectively. No loans are receivable from or payable to partners. After outside creditors are paid, if $50,000 in cash becomes available for distribution to the partners, how is it distributed?


A) $50,000 to D; $0 to E
B) $30,000 to D; $20,000 to E
C) $6,000 to D; $44,000 to E
D) $12,000 to D; $38,000 to E

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