Winchester, Wesson & Smith Are Dissolving Their Partnership

Winchester, Wesson & Smith are dissolving their partnership. Their agreement allocates profits and losses 40:30:30 respectively. The ending capital balances are Winchester $45,000; Wesson
$25,000 and Smith $13,000. After all assets are liquidated and liabilities paid, there is $12,000 in cash to be distributed. Smith's share of the excess cash is

A) $3,600.
B) $3,900.
C) $4,000.
D) $4,800.

Correct Answer:

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