Partners Robert and Sally Have $3,600 Capital Balances and Share

Partners Robert and Sally have $3,600 capital balances and share income and losses in a 2:1 ratio for Robert and Sally, respectively. Cash equals $1,200, noncash assets are $12,000, and liabilities are $5,500. If all the noncash assets are sold for $5,700, and each partner agrees to make up any capital deficits with personal cash contributions, Sally eventually will receive cash of:

A) $0.
B) $1,200.
C) $1,500.
D) $2,100.

Correct Answer:

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