Partners Ana, Beth, and Cathy have capital account balances of $90,000 each. The income and loss ratio is 5:2:3, respectively. In the process of liquidating the partnership, noncash assets with a book value of $75,000 are sold for $30,000. The balance of Beth’s Capital account after the sale is
a. $67,500.
b. $76,500.
c. $81,000.
d. $99,000.
Answer is C) 81,000
$90,000 - (.20) ($75,000 - $30,000) = $81,000
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