Black, White, and Red are partners, sharing profits and losses in a ratio of 20:60:20, respectively. On April 1, 20X1, the partners decided to liquidate their business. On the liquidation date, the firm had a $20,000 cash balance and noncash assets with a book value of $80,000. The firm also owed its creditors $40,000. Prior to the liquidation, Black had a $27,000 credit balance in his capital account, White had a $5,000 credit balance in his capital account, and Red had a $28,000 credit balance in his capital account. The firm sold its noncash assets for $65,000 and recorded a $15,000 loss on the sale. After allocating the loss to the partners' capital accounts, White's capital account had a deficit balance of $4,000, absorbed by Black and Red equally (\$2,000 each). Black's and Red's capital accounts had balances of $25,000 and $24,000 respectively. The firm settled its debts to creditors by making payments totaling $40,000 in cash. Assuming that White is personally insolvent, calculate the lump-sum payment attributable to Red on liquidation. Assume that the deficit in White's capital account is offset from the positive balances in the remaining partners' capital accounts in proportion to their respective profit sharing ratios. $22,500 $25,000 $24,000 $22,000