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| Larson, Martin, and Chan formed a partnership to manufacture widgets. Their capital contributions were $30,000, $60,000, and $90,000, respectively. They all managed the business; however, Larson spent much more time than the others. They agreed to split all profits equally, but at the end of the first year, they had a loss of $90,000. Assuming each partner has sufficient outside funds, how should they split this loss? A. $30,000 each because although they failed to decide how to split losses, they had decided to split profits equally. B. Larson suffers no loss because he worked more than the others. C. The loss cannot be divided until they agree on a loss-sharing plan. D. $15,000, $30,000, and $45,000, because they should split losses in proportion to their capital contributions. |