Clark and David are partners. Clark has contributed $25,000. David has contributed only his time and skill. On dissolution, after all firm debts are paid, $20,000 in assets remains. Which of the following is NOT correct?
A) The $20,000 remaining after payment is profit that will be equally divided.
B) The partnership has sustained a loss of $5,000.
C) David is not entitled to any part of the $20,000.
D) David has no obligation to reimburse Clark for any loss.
A
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