Fatima and Jaddon Have Capital Balances of $50 000 and $80

Multiple Choice

Fatima and Jaddon have capital balances of $50 000 and $80 000, respectively and use the variable capital balances method. If their profit/loss sharing ratios are Fatima 40% and Jaddon 60%, calculate Fatima's capital balance after the net loss of $60 000 is distributed.

A) $74 000
B) $26 000
C) $50 000
D) $20 000