Q74
Single choice
Smith and James were partners in S and J Partnership. The partnership agreement stated that all profits and losses were allocated 60 percent to Smith and 40 percent to James. The partners decided to terminate and wind up the partnership.
The following was the balance sheet for S and J on the day of the windup:
Of the total accounts receivable, $10,000 was collected and the remainder was written off as bad debt. All liabilities of S and J were paid by the partnership. The property and equipment are sold for $32,000.
Under the Uniform Partnership Act, what amount of cash was distributed to Smith?