In liquidation, balances prior to the distribution of cash to the partners are: Cash $360,000; Peterson, Capital $168,000; Staley, Capital $156,000, and Klugman, Capital $36,000. The income ratio is 6:2:2, respectively. How much cash should be distributed to Peterson?
A) $150,000.
B) $163,500.
C) $168,000.
D) $180,000.
Correct Answer:
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