The Muldoon Partnership consists of three partners, Adam, Dawn, and Lorrie. The partnership agreement provides for annual salaries of $40,000 to Dawn and $60,000 to Lorrie. Residual profits are shared in a 3:3:4 ratio. Salaries are to be fully implemented, even if partnership net income is less than total salaries. Partnership net income for the year is $140,000. Adam's share of net income is

a) $14,000.

b) $12,000.

c) $42,000.

d) $ 4,000.