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 $420,000, Andrew $700,000, Peter $300,000

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

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

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