Art and Alma made capital contributions of 60% and 40% respectively to their newly formed partnership, AA & Associates. They did not have a written partnership agreement. At the end of the first year, the partnership made a profit of which Alma now claims half. However, Art maintains he should receive 60%. Who is correct?
A. Art, since the UPA presumes that profits and losses are divided in proportion to capital contribution.
B. Art, since it would only be fair.
C. Alma, because she works in the business.
D. Alma, as the UPA provides that profits are split equally unless the partners agree otherwise.
Answer: D
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