During the Liquidation of the Partnership of Karr, Rice, and Long

question 18

Multiple Choice

During the liquidation of the partnership of Karr, Rice, and Long. Karr accepts, in partial settlement of his interest, a machine with a cost to the partnership of $150,000, accumulated depreciation of $70,000, and a current fair value of $110,000. The partners share net income and loss equally. The net debit to Karr's account (including any gain or loss on disposal of the machine) is:

• A) $90,000.
• B) $100,000.
• C) $110,000.
• D) $150,000.