Ten Years Ago, Tad and Tori Created a Partnership

Multiple Choice

Ten years ago, Tad and Tori created a partnership. At that time, he contributed $400 000 in property and Tori contributed $600 000 in cash. as capital for the partnership. Two years later, Tori provided $300 000 to the partnership as an interest- free loan. That loan has not yet been repaid. During the entire life of the partnership, Tori performed approximately 60 per cent of the partnership's work, while Tad tended to devote much of his time to various charitable causes that were unrelated to the partnership. The partnership has now been dissolved. Sale of the partnership assets produced a fund of $1 200 000. It is necessary to spend $200 000 on debts that the partnership still owes to various creditors. Assuming that the parties have not replaced or modified the default rules applicable to their partnership

A) Tad and Tori will receive the same amount.
B) Tori will receive an amount that reflects the fact that she performed 60 per cent of the partnership's work.
C) a judge will consider all of the circumstances and then exercise a discretion to determine how much each party is entitled to receive.
D) Tori will receive an amount equal to her original contribution and repayment of her loan.
E) Tori will receive $750 000.