The GAP Partnership has decided to liquidate at December 31, 2019. The capital and loan balances of the partners at December 31, 2019 are provided below:

Partner

Capital Balances

Loan Balances

Profit/Loss

Sharing %

George

$210,000

$40,000 account payable

50%

Andrew

140,000

20,000 account receivable

20%

Peter

90,000

30,000 account payable

30%

Outside liabilities are $50,000.

Liquidation expenses are estimated to be $12,000.

The Loss Absorption Potential (LAP) for the partners are as follows:

Select one:

a. George $340,000, Andrew $800,000, Peter $200,000

b. George $420,000, Andrew $700,000, Peter $300,000

c. George $400,000, Andrew $600,000, Peter $300,000

d. George $500,000, Andrew $600,000, Peter $400,000