1. The partnership of Gordon, Handel, and Mitchell is considering possible liquidation because partner Mitchell is personally insolvent. The partners have the following capital account balances: $120,000, $140,000, and $80,000, respectively, and share profits and losses 35%, 45%, and 20%, respectively. The partnership has $400,000 in noncash assets that can be sold for $300,000. The partnership has $20,000 cash on hand, and $80,000 in liabilities.

What is the minimum that partner Mitchells creditors would receive if they have filed a claim for $100,000?

a. $60,000.

b. $100,000.

c. $20,000.

d. $80,000.

e. $0.