The Net Income Agreement for Crosby and Stills States Net

The net income agreement for Crosby and Stills states net income and net loss shall be divided in a ratio of beginning capital balances.The net loss for the current year is $50,000.On January 1 of the current year,the capital balances were as follows: Crosby,$55,000; and Stills,$65,000.During the current year Crosby withdrew $40,000 and Stills withdrew $25,000.Compute the capital balances as of December 31 of the current year.

A) $$\begin{array} { | c | c | } \hline \text { Crosby, capital } & \text { Stills, capital } \\\hline \text { debit of } \$ 7,917 & \text { debit of } \$ 12,917 \\\hline\end{array}$$
B) $$\begin{array} { | l | c | } \hline \text { Crosby, capital } & \text { Stills, capital } \\\hline \text { credit of } \$ 7,917 & \text { credit of } \$ 12,917 \\\hline\end{array}$$
C) $$\begin{array} { | c | c | } \hline \text { Crosby, capital } & \text { Stills, capital } \\\hline \text { debit of } \$ 7,917 & \text { credit of } \$ 12,917 \\\hline\end{array}$$

D) $$\begin{array} { | c | c | } \hline \text { Crosby, capital } & \text { Stills, capital } \\\hline \text { debit of } \$ 12,917 & \text { credit of } \$ 7,917 \\\hline\end{array}$$