Andy and Bob were partners who began to liquidate their business. At the start of the process, the capital balances for Andy and Bob were $105,000 and $60,000 respectively. Andy has a profit & loss percentage of 70% and Bob has a profit & loss percentage of 30%.

Assume that estimated partnership liabilities and liquidation expenses are $55,000. If the partners wish to withdraw funds before the liquidation is complete, how should the money be distributed to the partners?

a. $55,000 must be reserved to pay partnership & liquidation expenses. Then, the first $30,000 to Bob. Any additional funds 70% to Andy and 30% to Bob. b. $55,000 must be reserved to pay partnership & liquidation expenses. Then, the first $30,000 to Andy. Any additional funds 70% to Andy and 30% to Bob. c. $55,000 must be reserved to pay partnership & liquidation expenses. Then, the first $15,000 to Bob. Any additional funds 70% to Andy and 30% to Bob. d. $55,000 must be reserved to pay partnership & liquidation expenses. Then, the first $15,000 to Andy. Any additional funds 70% to Andy and 30% to Bob. e. None of the above.