Use the following information for the next two questions: Partners A, B and C decided to liquidate their partnership. A summary of the partnerships statement of financial position is shown below: Cash 50,000 Noncash assets 1,200,000 Total 1,250,000

Accounts payable 100,000 Payable to A 50,000 A, Capital (50%) 540,000 B, Capital (30%) 360,000 C, Capital (20%) 200,000 Total 1,250,000 58. If a cash priority program is prepared, which partner is paid first and how much is the total payments to that partner before all partners will share on the available cash based on their profit and loss ratios? a. A, 20,000 c. B, 90,000 b. B, 60,000 d. B, 96,000 59. Three-fourths (3/4) of the noncash assets were sold for 920,000. The partnership paid 5,000 transaction costs on the sale. How much cash did A receive from the settlement of the partners interests under the cash priority program? a. 493,500 c. 386,500 b. 447,500 d. 306,500 60. A, B, C, and D are partners, sharing earnings in the ratio of 3/21, 4/21, 6/21 and 8/21, respectively. The balances of their capital accounts on December 31, 20x1 are as follows: A. 1,000

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B.. 25,000 C. 25,000 D 9,000 60,000 The partners decide to liquidate, and they accordingly convert the non-cash assets into 23,200 cash. After paying the liabilities amounting to 3,000, they have 22,000 to divide. Assume that a debit balance of any partners capital is uncollectible. The share of B in the cash distribution to the partners was: (round-off answer) a. 3,200 c. 13,800 b. 4,500 d. 17,800