40. As of December 31, 2021, the books of Valdez, Garcia, and Cando Partnership showed capital balances of Valdez, P40,000; Garcia, P25,000; and Cando, P5,000. The partners' profit and loss ratio was 3:2:1, respectively. The partners decided to dissolve and liquidate. They sold all the non-cash assets for P37,000 cash. After settlement of all liabilities amounting to P12,000, they still have P28,000 cash left for distribution. The loss on realization of the non-cash assets was: O a. P21,000 o b. P40,000 C c. P42,000 O d. P45,000