Monica and Sabrina have operated an accounting partnership for the past decade in Biloxi, but now want to retire to pursue other activities. Their partnership balance sheet is presented below:

Assets

Cash 200,000

Receivables 300,000

Equipment 150,000

Building and Land 250,000

Total Assets 900,000

Liabilities 200,000

Capital: Monica 300,000

Capital: Sabrina 400,000

Total Liabilities and Equity 900,000

Assume that Monica and Sabrina have 60% and 40% P&L ratios. if the non-cash assets of the partnership are sold to Shasta for $600,000, how much cash should be distributed to Monica and Sabrina?

a.Monica gets $240,000 and Sabrina gets $360,000

b.Monica gets $300,000 and Sabrina gets $400,000

c.Monica gets $340,000 and Sabrina gets $460,000

d.Monica gets $400,000 and Sabrina gets $400,000

e.None of the Above