Allison and Josh Are Partners in a Business

Multiple Choice

Allison and Josh are partners in a business. Allison's capital is $120,000 and Josh's capital is $120,000. Profits for the year are $80,000. They agree to share profits and losses as follows: Allison's share of the profits before paying salaries and interest on capital is: (Round any intermediate calculations to two decimal places, and your final answer to the nearest dollar.)

A) $48,000.
B) $70,500.
C) $40,000.
D) $11,400.