Mr. 123 and Ms. 246 are partners in a construction business located in 1/2 City. The profit and loss agreement contain the following provisions: 1) Salaries of 35,000 and 40,000 for 123 and 246, respectively. 2) A bonus to 123 equal to 10% of net income after the bonus. 3) Interest on weighted average capital at the rate of 8%. Annual drawings in excess of 20,000 are considered to be a reduction of capital for purposes of this calculation. 4) Profit and loss percentage of 40% and 60% for 123 and 246, respectively. Capital and drawing activity of the partners for the year 20x1 are as follows: 123 Capital 123 Drawing 246 Capital 246 Drawing Beginning balance 120,000 0 60,000 0 April 1 20,000 June 1 15,000 20,000 September 1 30,000 November 1 . 15,000 40,000 . Ending balance 170,000 30,000 100,000 20,000 Assuming net income for 20x1 of 132,000 before any allocations, how much profit should be allocated to Mr. 123? A. 69,827 B. 69,747 C. 72,774 D. 69,774