Profit sharing using partner-months ratio, adjusting for ignored bad debt Steps:

• Adjust total profit by ignoring irrecoverable debt: $60,000 +$2,000 = $62,000 (assuming$6000 is typed error for $60,000).
• Calculate partner-months: original partners 12 each (24 total), Jim 10 months, grand total 34 partner-months.
• Jim's proportion: 10/34 of adjusted profit.
• Jim's share: $62,000 × (10/34) ≈$18,000. Why D is correct:
• Partnership profits shared proportionally to time each partner contributed (partner-months method), with bad debt added back per admission agreement ignoring it for sharing (standard under partnership law for equitable distribution). Why the others are wrong:
• A: Full 10/12 share of unadjusted profit ($60,000 × 10/12 =$50,000, but scaled down; ignores partners and debt).
• B: Double unadjusted profit ($60,000 × 2); misapplies no time or partner adjustment.
• C: 10/12 of unadjusted profit times partners ($50,000 × 3/10 or similar); forgets debt adjustment and correct ratio. Final answer: D