Nancy and Betty enter into a partnership agreement where they decide to share profits according to the following rules:

(a) Nancy and Betty will receive salaries of

$ 1,200 and

$ 14,500

respectively as the first allocation.

(b) The next allocation is based on

10%

of each partner's capital balances.

(c) Any remaining profit or loss is to be allocated completely to Betty.

The partnership's net income for the first year is

$ 50,000

.

Nancy's capital balance is

$ 95,000

and Betty's capital balance is

$ 12,000

as at the end of the year. Calculate the share of profit/loss to be allocated to Betty. (Round your answer to the nearest dollar.)

A.

$ 1,070

B.

$ 9,500

C.

$ 10,700

D.

$ 39,300