The Keaton, Lewis, and Meador partnership had the following balance sheet just before entering

liquidation:

Cash $ 10,000 Liabilities $ 130,000

Noncash assets 300,000 Keaton, capital 60,000

Lewis, capital 40,000

Meador, capital 80,000

Total $ 310,000 Total $ 310,000

Keaton, Lewis, and Meador share profits and losses in a ratio of 2:4:4. Noncash assets were sold for

$180,000. Liquidation expenses were $10,000.

Assume that Keaton was personally insolvent with assets of $8,000 and liabilities of $60,000. Lewis and

Meador were both solvent and able to cover deficits in their capital accounts, if any. What amount of

cash could Keaton's personal creditors have expected to receive from partnership assets?

A) $30,000.

B) $0.

C) $52,000

D) $26,000

E) $34,000