Philip and Deborah form an LLC. Philip contributes $50,000 capital and Deborah contributes $75,000 capital. They do not have an agreement as to how profits are to be shared. If the LLC makes $100,000 profit in its first year, how will the profit be divided among the members?
A. Philip gets $30,000 and Deborah gets $70,000.
B. Philip gets $50,000 and Deborah gets $50,000.
C. Philip gets $25,000 and Deborah gets $75,000.
D. Philip gets $35,000 and Deborah gets $65,000.
Answer: B
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