It Is Agreed in the Partnership Agreement of R and B

Multiple Choice

It is agreed in the partnership agreement of R and B that profit and loss sharing arrangements will be based on the ratio of the partner's capital balances.R and B have capital balances of $100 000 and $50 000 respectively at the end of the accounting period.If profit is $42 000 the profit allocations of each of the partners is:

A) R $21 000; B $21 000
B) R $24 000; B $18 000
C) R $28 000; B $14 000
D) R $14 000; B $28 000