3. After all noncash assets have been converted into cash in the liquidation of the Mal and Max partnership, the ledger contains the following account balances:

Debit Credit Cash $34,000 —

Accounts payable — $25,000 Loan payable to Mal — 9,000 Mal capital 8,000 —

Max capital — 8,000 Available cash should be distributed as follows: $25,000 to accounts payable and:

a $9,000 for loan payable to Mal b $4,500 each to Mal and Max c $1,000 to Mal and $8,000 to Max d $8,000 to Mal and $1,000 to Max