Muirmark LLC sustains a significant loss after an investment fails. The company has 4 members who must sustain a loss of $100,000. Members A and B hold 40% of the company's investment each, and members C and D hold 10% each. How is the loss distributed?

• Members A and B accept $40,000 losses each, and members C and D accept $10,000 losses each.
• The LLC itself absorbs the loss.
• The members may decide how to distribute the loss.
• Each member accepts $25,000 loss.