Duffie and Simpson have decided to liquidate their partnership after several years of losses. Their partnership agreement states that the partners share in income and losses equally. At the time of liquidation, the capital balances were $78,400 Duffie and $61,600 Simpson. The company has $14,000 cash on hand. Non-cash assets are liquidated for $120,000, with no resulting gain or loss. Liabilities of $76,000 are paid to creditors, with no gain or loss incurred. The amount to be distributed to Simpson upon liquidation is:
A)$61,600
B)$58,960
C)$32,480
D)$29,000
E)$25,520

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The Answer of Duffie and Simpson have decided to liquidate their partnership after several years of losses. Their partnership agreement states that the partners share in income and losses equally. At the time of liquidation, the capital balances were $78,400 Duffie and $61,600 Simpson. The company has $14,000 cash on hand. Non-cash assets are liquidated for $120,000, with no resulting gain or loss. Liabilities of $76,000 are paid to creditors, with no gain or loss incurred. The amount to be distributed to Simpson upon liquidation is:
A)$61,600
B)$58,960
C)$32,480
D)$29,000
E)$25,520

Duffie and Simpson Have Decided to Liquidate Their Partnership After