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

(a) Nancy and Betty will receive salaries of $12,500 and$24,500 respectively as the first allocation.

(b) The next allocation is based on 20% of each partner's capital balances.

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

The partnership's net loss for the first year is $30,000. Nancy's capital balance is $107,000 and Betty's capital balance is $11,000 as at the end of the year. Calculate the share of profit (loss) to be allocated to Nancy.

A.

$33,900

B.

$(3,900)

C.

$12,500

D.

$(21,400)