The Partnership Shows the Following Capital Balances Immediately Prior to the Liquidation

Multiple Choice

The partnership shows the following capital balances immediately prior to the liquidation of the partnership: Kapoor,$252,000,Patel,$114,000,and Punjab,$114,000.The partners share income and loss equally.The partnership's noncash assets consist of a tract of land,which was originally purchased for $100,000.As part of its liquidation,the partnership sells its land for $112,000.How would the partnership record the sale of the land?

A) Debit Cash for $112,000,credit Land for $100,000,and credit Gain from Sale for $12,000.
B) Debit Cash for $112,000,credit Land for $100,000,and credit Gain from Liquidation for $12,000.
C) Debit Cash for $112,000,credit Land for $100,000,credit Kapoor,Capital for $4,000,credit Patel,Capital for $4,000,and credit Punjab,Capital for $4,000.
D) Debit Cash for $100,000 and credit Land for $100,000.
E) Debit Cash for $112,000 and credit Land for $112,000.