Ryan, Peter, and James share profits 3:2:1. They liquidate the partnership. The furniture and equipment are sold at a $8000 loss. The accounts receivable were collected in full and the other assets were written off as worthless. The liabilities were paid off at book value. James argued that he should receive a portion of the remaining cash, but Ryan and Peter disagree. How much cash should James receive or pay?
The balance sheet of Ryan, James and Peter's partnership as of December 31, 2018, is given below.
A) He should receive $1500.
B) He should not receive or pay any money.
C) He should pay $55,500.
D) He should pay $500.
D) He should pay $500.
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