The VWX Partnership is undergoing an installment

The VWX Partnership is undergoing an installment liquidation. Partners Victor, Whitney and Xavier share income in a 3:5:2 ratio. The partnership balance sheet is as follows:

Assets

Cash – 7,000

AR – 10,000

Loan Rcvable (Victor) – 13,000

Inventory – 25,000

Buildings and equipment, net – 545,000

TOTAL ASSETS – 600,000

Liabilities

AP – 20,000

Loan Payable (Whitney) – 50,000

TOTAL LIABILITIES – 70,000

Capital

Victor – 100,000

Whitney – 250,000

Xavier – 180,000

TOTAL CAPITAL – 530,000

Your are preparing a cash distribution plan for the partnership.

If $249,000 is available to distribute TO THE PARTNERS, how is it distributed?

A- $249,000 to Xavier

B- $135,000 to Whitney and $114,000 to Xavier

C- $40,000 to Victor, $160,000 to Whitney, and $49,000 to Xavier

D- $125,000 to Whitney and $124,000 to Xavier