Upon liquidation, the A&N Partnership realizes a gain on sale of assets amounting to P120,000. The gain is allocated to the partners, Arnel and Nilo, according to their profit and loss ration of 2:1. How is the gain allocated to each partner?*

a.) Arnel - P80,000; Nilo - P40,000

b.) Arnel - P40,000; Nilo - P80,000

c.) Arnel - P240,000 Nilo - P120,000

d.) Arnel - P60,000; Nilo - P60,000