Henry,Luther,and Gage Are Dissolving Their Partnership

Multiple Choice

Henry,Luther,and Gage are dissolving their partnership.Their partnership agreement allocates each partner 1/3 of all income and losses.The current period's ending capital account balances are Henry,$45,000;Luther,$37,000;and Gage,$(5,000) .After all assets are sold and liabilities are paid,there is $77,000 in cash to be distributed.Gage is unable to pay the deficiency.What amount of cash will Gage receive upon liquidation?

A) $25,667.
B) $20,667.
C) $30,667.
D) Gage will be invoiced for $5,000.
E) $0.