Joe, Mike and Judy, three independent sole proprietors, decided to pool their resources and form a general partnership. Joe contributed $15,000 in capital, Mike contributed $30,000 in equipment and Judy contributed $25,000 in cash and equipment. The partnership commenced business on September 1, 2018, but the parties did not sign a formal partnership agreement until October 15, 2018. In 2019, the partnership made $6,000 in profits. The partnership agreement is silent on how profits and losses are shared. The parties are now in dispute as to how profits and losses are to be shared. Which, if any, of the following statements is/are correct?

Select one:

a.

Mike, Joe and Judy will each receive $2,000 in profits

b.

Mike will receive twice as much of the profits as Joe will receive

c.

The partnership began its existence on October 15, 2018 when the partnership agreement was signed.

d.

Two of the above are correct.