Bauer and Flynn share profits and losses in the ratio of 60/40. The afterclosing trial balance of their partnership just prior to liquidation showed Cash $5,000; Other Assets $80,000; Liabilities $60,000; Bauer, Capital $20,000; and Flynn, Capital $5,000.

1. If the Other Assets are sold for a lump sum of $70,000, Bauer will receive which of the following amounts from the partnership? A. $20,000 B. $14,000 c. $12,000 D. $10,000

2. If the Other Assets are sold for a lump sum of $60,000 and Flynn is solvent, Bauer will receive A. $20,000. B. $14,000. c. $8,000. D. $5,000.

3. Assuming the partnership is liquidated on an installment basis and Other Assets with a book value of $50,000 are sold for $70,000, which one of the following amounts may be paid to Bauer at that time? A. $32,000 B. $20,000 c. $15,000 D. $12,500