The VWX Partnership is undergoing an installment liquidation. Partners Victor, Whitney and Xavier share income in a 3:5:2 ratio. The partnership balance sheet is as follows:

Assets

Cash - 7,000

AR - 10,000

Loan Rcvable (Victor) - 13,000

Inventory - 25,000

Buildings and equipment, net - 545,000

TOTAL ASSETS - 600,000

Liabilities

AP - 20,000

Loan Payable (Whitney) - 50,000

TOTAL LIABILITIES - 70,000

Capital

Victor - 100,000

Whitney - 250,000

Xavier - 180,000

TOTAL CAPITAL - 530,000

Your are preparing a cash distribution plan for the partnership.

If $249,000 is available to distribute TO THE PARTNERS, how is it distributed?

A- $249,000 to Xavier

B- $135,000 to Whitney and $114,000 to Xavier

C- $40,000 to Victor, $160,000 to Whitney, and $49,000 to Xavier

D- $125,000 to Whitney and $124,000 to Xavier