The XYZ partnerships has the following information:

Cash 125,000

Note Rec. X 10,000

Non-current assets 300,000

Accounts payable 75,000

Notes Payable Y 20,000

X-Cap 80,000 (50%)

Y-Cap 175,000 (30%)

Z-Cap 85,000 (20%)

The Partnership decides upon installment liquidation it will take 2 months to liquidate the partnership. It is estimated that total liquidation expenses will be $12,500. Enough cash will be left on hand at the end of each month to pay any remaining estimated liquidation expenses.

Month 1: Non-current assets with a book value of $200,000 are sold for $50,000. Half of the accounts payables are paid off. Liquidation costs of $4000 are incurred.

How much can salary be distributed to the partners at the end of month 1?